Financial guaranty insurer Assured Guaranty (NYSE:AGO) will be reporting earnings this Thursday after the bell. Here’s what you need to know.
Assured Guaranty beat analysts’ revenue expectations by 74.7% last quarter, reporting revenues of $345 million, up 40.8% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ EPS and net premiums earned estimates.
Is Assured Guaranty a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Assured Guaranty’s revenue to decline 8% year on year to $185.8 million, improving from the 43.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.59 per share.
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. Assured Guaranty has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 47.6% on average.
Looking at Assured Guaranty’s peers in the property & casualty insurance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mercury General delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 2%, and Allstate reported revenues up 6%, falling short of estimates by 0.7%. Mercury General’s stock price was unchanged after the resultswhile Allstate was up 5.7%.
Read our full analysis of Mercury General’s results here and Allstate’s results here.
Investors in the property & casualty insurance segment have had fairly steady hands going into earnings, with share prices down 2% on average over the last month. Assured Guaranty is up 1.1% during the same time and is heading into earnings with an average analyst price target of $106.50 (compared to the current share price of $85.79).
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