Everest Group Prepares for Earnings Report Amidst Market Struggles
Everest Group, Ltd. (EG), based in Hamilton, Bermuda, is a prominent global player in the reinsurance and insurance markets. With a market cap of $15.9 billion, the company delivers a variety of risk management products across the globe. Everest is scheduled to announce its Q4 earnings after the market closes on Monday, Feb. 3.
Profit Expectations and Historical Performance
Analysts predict that EG will report a profit of $11.55 per share, showing a decline of 54.1% from $25.18 per share in the same quarter last year. Over the past year, the company has beaten Wall Street’s EPS estimates in three out of the last four quarters but missed out in one quarter.
Strong Q3 Performance
In Q3, Everest Group achieved an adjusted EPS of $14.62, surpassing consensus estimates by 22.8%. This performance stemmed from robust underwriting and effective risk management practices.
Future Earnings Projections
Looking ahead to fiscal 2024, analysts anticipate an EPS of $59.39, marking a 10.5% decrease from $66.39 in fiscal 2023. However, EPS is expected to recover in fiscal 2025, rising by 9.7% to $65.14.
Stock Performance Compared to Major Indices
Over the past 52 weeks, shares of Everest Group have declined by 1.1%, falling behind the S&P 500 Index’s ($SPX) 24.2% rise and the Financial Select Sector SPDR Fund’s (XLF) 27.6% return during the same period.
Challenges Facing Everest Group
Everest Group’s performance has been hampered by missed revenue expectations, increasing catastrophe losses, and growing expenses. Their Q3 earnings report, released on Oct. 30, sparked a 6.4% drop in share price during the following trading session.
In Q3, revenue rose by 13% year-over-year, amounting to $4.3 billion, yet fell short of Wall Street’s $4.5 billion forecast. The company reported a net operating income of $630 million, boosted by better underwriting margins and substantial net investment income, with operating cash flow at a solid $1.7 billion compared to $1.4 billion in fiscal Q3 2023.
Analyst Outlook on EG Stock
The general sentiment among analysts regarding EG stock is cautiously optimistic, leading to an overall “Moderate Buy” rating. Among 14 analysts covering the stock, five advocate a “Strong Buy,” one recommends a “Moderate Buy,” seven advise a “Hold,” and one suggests a “Strong Sell.”
The average analyst price target for EG is $422.23, offering a potential upside of 14.6% from current levels.
On the date of publication,
Rashmi Kumari
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy
here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
