Financial guaranty insurer Assured Guaranty (NYSE: AGO) will be reporting results this Thursday after market close. Here’s what to look for.
Assured Guaranty missed analysts’ revenue expectations last quarter, reporting revenues of $195 million, down 30.6% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates.
Is Assured Guaranty 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 Assured Guaranty’s revenue to decline 2.3% year on year, improving from the 23% decrease 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. Assured Guaranty has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Assured Guaranty’s peers in the property & casualty insurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Assurant delivered year-on-year revenue growth of 9.7%, beating analysts’ expectations by 2.4%, and Markel Group reported revenues up 5.7%, topping estimates by 10%. Markel Group traded up 1.2% following the results.
Read our full analysis of Assurant’s results here and Markel Group’s results here.
There has been positive sentiment among investors in the property & casualty insurance segment, with share prices up 6.9% on average over the last month. Assured Guaranty is up 1.4% during the same time and is heading into earnings with an average analyst price target of $91 (compared to the current share price of $70.13).
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