Digital insurance provider Lemonade (NYSE: LMND) will be announcing earnings results this Wednesday before the bell. Here’s what to look for.
Lemonade beat analysts’ revenue expectations last quarter, reporting revenues of $258 million, up 70.6% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ net premiums earned estimates and a beat of analysts’ EPS estimates.
Is Lemonade 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 Lemonade’s revenue to grow 77.2% year on year, improving from the 34.5% 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. Lemonade has a history of exceeding Wall Street’s expectations.
Looking at Lemonade’s peers in the property & casualty insurance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. First American Financial delivered year-on-year revenue growth of 15%, beating analysts’ expectations by 3.4%, and RLI reported revenues up 5%, topping estimates by 1%. First American Financial traded down 2.2% following the results while RLI was up 3.7%.
Read our full analysis of First American Financial’s results here and RLI’s results here.
There has been positive sentiment among investors in the property & casualty insurance segment, with share prices up 4.7% on average over the last month. Lemonade is down 1.5% during the same time and is heading into earnings with an average analyst price target of $64.22 (compared to the current share price of $61.24).
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