Arch Capital Group Set to Reveal Earnings Amidst Mixed Performance
Arch Capital Group Ltd. (ACGL), based in Pembroke, Bermuda, is readying for an important announcement. With a market capitalization of $35.9 billion, this company provides a range of financial services, including life, health, property insurance, reinsurance, and mortgage insurance. Investors are eagerly anticipating ACGL’s fiscal fourth-quarter earnings report for 2024, scheduled for release after market hours on Monday, February 10.
Anticipated Earnings and Yearly Outlook
Analysts forecast ACGL will report a profit of $1.85 per share, down 25.7% from last year’s $2.49 per share. Notably, ACGL has outperformed Wall Street’s earnings-per-share (EPS) estimates in each of the last four quarterly reports.
For the entire fiscal year, projections indicate an EPS of $8.86, marking a 4.9% increase from $8.45 in fiscal 2023. Looking ahead, EPS is expected to grow 1.8% year over year, reaching $9.02 in fiscal 2025.
Stock Performance Compared to the Market
In the last 52 weeks, ACGL shares have increased by 21.4%, falling short of the S&P 500’s impressive 26.5% gain and trailing behind the Financial Select Sector SPDR Fund’s (XLF) 34.8% rise during the same period.
Challenges and Recent Quarter Insights
The company has faced challenges that have impacted its performance, particularly reduced underwriting income across all segments and significant catastrophic losses due to Hurricane Helene, which shook investor confidence.
On October 30, ACGL released its Q3 results, and its stock experienced a notable decline of more than 6% in the subsequent trading session. The adjusted EPS was reported at $1.99, surpassing analysts’ expectation of $1.94. Revenue reached $4.7 billion, reflecting a substantial year-over-year increase of 41.8%.
Analysts’ Ratings and Price Target
Overall, analysts maintain a moderately bullish view on ACGL stock, reflected in a “Moderate Buy” rating. Among the 17 analysts following the stock, 10 advocate for a “Strong Buy,” two recommend “Moderate Buy,” four suggest a “Hold,” while one proposes a “Strong Sell.” The average analyst price target for ACGL is set at $117.31, suggesting a potential upside of 22.8% from current market levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
