Digital insurance provider Lemonade (NYSE: LMND) will be announcing earnings results this Wednesday morning. Here’s what you need to know.
Lemonade beat analysts’ revenue expectations by 2.4% last quarter, reporting revenues of $164.1 million, up 34.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ net premiums earned estimates and EPS in line with analysts’ estimates.
Is Lemonade a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Lemonade’s revenue to grow 35.8% year on year to $185.5 million, improving from the 19.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.71 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Lemonade has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4.2% on average.
Looking at Lemonade’s peers in the property & casualty insurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Stewart Information Services delivered year-on-year revenue growth of 19.1%, beating analysts’ expectations by 30.8%, and Skyward Specialty Insurance reported revenues up 27.1%, topping estimates by 14.3%. Stewart Information Services traded down 4.1% following the results while Skyward Specialty Insurance was up 1.4%.
Read our full analysis of Stewart Information Services’s results here and Skyward Specialty Insurance’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the property & casualty insurance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.7% on average over the last month. Lemonade is up 9.4% during the same time and is heading into earnings with an average analyst price target of $45.88 (compared to the current share price of $61.35).
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