Chubb Limited Prepares for Q4 Earnings Announcement Amid Mixed Analyst Sentiment
Zurich, Switzerland-based Chubb Limited (CB) stands as a significant player in the insurance and reinsurance sectors. Offering a range of services including commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance, the company caters to an array of clients. With a market capitalization of $103.9 billion, Chubb is set to reveal its fiscal Q4 earnings results after market hours on Tuesday, January 28.
Expectations for Q4 Earnings
Analysts anticipate Chubb will announce a profit of $5.48 per share, representing a 34% decline from the $8.30 per share reported in the same quarter last year. Chubb has shown solid performance historically, consistently surpassing Wall Street’s earnings estimates in the last four quarters. Notably, in Q3, the company reported an adjusted EPS of $5.72, exceeding expectations by a notable 16%.
Future Earnings Projections
For fiscal 2024, projections suggest an EPS of $21.93, which marks a slight drop of 2.7% from the previous year’s $22.54. However, forecasts for fiscal 2025 predict a positive turnaround, with EPS expected to rise by 5.5% year-over-year to $23.14.
Stock Performance Analysis
Over the past year, Chubb’s shares have gained 14.4%, yet this lags behind the S&P 500 Index’s ($SPX) 21.8% increase and the Financial Select Sector SPDR Fund’s (XLF) 25.2% return during the same period.
Q3 Earnings Performance and Analyst Ratings
Following the release of its Q3 earnings on October 29, Chubb’s stock fell by 1.2%. Although revenues reached $15 billion—a 6.5% annual increase—this fell short of Wall Street’s expectation of $15.2 billion. Increased catastrophe losses impacted the company’s otherwise strong results in key divisions like North America P&C, Overseas General, and Life Insurance. On a positive note, its adjusted earnings of $5.72 per share beat the projected $4.93, reflecting a year-over-year growth of 15.6%, bolstered by solid underwriting and improved investment income.
Among analysts, the general sentiment towards Chubb remains cautiously optimistic, with an overall rating of “Moderate Buy.” Out of 24 analysts, 11 recommend a “Strong Buy,” two suggest a “Moderate Buy,” nine propose a “Hold,” while one each recommends a “Moderate Sell” and a “Strong Sell.”
The average price target for Chubb Limited is $301.96, indicating a potential upside of 17.2% from current levels.
On the date of publication,
Neharika Jain
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 further details, please view the Barchart Disclosure Policy
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