Workers' compensation insurer Employers Holdings (NYSE: EIG) will be reporting results this Wednesday after market close. Here’s what to expect.
Employers Holdings missed analysts’ revenue expectations last quarter, reporting revenues of $170.5 million, down 21.3% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but a significant miss of analysts’ revenue estimates.
Is Employers Holdings 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 Employers Holdings’s revenue to grow 4.4% year on year, a reversal from the 9.2% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Employers Holdings has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Employers Holdings’s peers in the property & casualty insurance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Stewart Information Services delivered year-on-year revenue growth of 27.7%, beating analysts’ expectations by 4.7%, and First American Financial reported revenues up 16.2%, topping estimates by 2.4%. Stewart Information Services traded up 3.9% following the results while First American Financial was also up 3.5%.
Read our full analysis of Stewart Information Services’s results here and First American Financial’s results here.
There has been positive sentiment among investors in the property & casualty insurance segment, with share prices up 6.7% on average over the last month. Employers Holdings is up 3.6% during the same time and is heading into earnings with an average analyst price target of $46 (compared to the current share price of $42.56).
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