Property and casualty insurer Travelers (NYSE: TRV) will be reporting results this Friday morning. Here’s what you need to know.
Travelers missed analysts’ revenue expectations last quarter, reporting revenues of $12.09 billion, flat year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ book value per share estimates.
Is Travelers a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Travelers’s revenue to be flat year on year, slowing from the 5% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Travelers has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Travelers’s peers in the insurance segment, only Progressive has reported results so far. It missed analysts’ revenue estimates, delivering year-on-year sales growth of 3%.
Read our full analysis of Progressive’s earnings results here.In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the insurance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.4% on average over the last month. Travelers’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $360.67 (compared to the current share price of $380.00).
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