Digital insurance provider Lemonade (NYSE: LMND) will be reporting results this Thursday before the bell. Here’s what you need to know.
Lemonade beat analysts’ revenue expectations last quarter, reporting revenues of $294.4 million, up 79.4% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ net premiums earned estimates but EPS in line with analysts’ estimates.
Is Lemonade 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 Lemonade’s revenue to grow 66.4% year on year, improving from the 42.4% increase 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. Lemonade has a history of exceeding Wall Street’s expectations.
Looking at Lemonade’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. Lemonade is down 11.7% during the same time and is heading into earnings with an average analyst price target of $58.44 (compared to the current share price of $41.20).
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