Insurance holding company American Financial Group (NYSE: AFG) will be reporting results this Tuesday after market close. Here’s what to look for.
American Financial Group missed analysts’ revenue expectations last quarter, reporting revenues of $1.76 billion, up 1.7% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ net premiums earned estimates and a significant miss of analysts’ book value per share estimates.
Is American Financial Group 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 American Financial Group’s revenue to grow 5.1% year on year, improving from the 3% 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. American Financial Group has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at American Financial Group’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 Markel Group reported flat revenue, topping estimates by 1.1%. First American Financial traded down 2.2% following the results while Markel Group was also down 6.4%.
Read our full analysis of First American Financial’s results here and Markel Group’s results here.
Investors in the property & casualty insurance segment have had steady hands going into earnings, with share prices flat over the last month. American Financial Group’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $147.17 (compared to the current share price of $141.72).
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