Auto insurance provider Mercury General (NYSE:MCY) will be reporting results this Tuesday after market hours. Here’s what investors should know.
Mercury General beat analysts’ revenue expectations by 6.7% last quarter, reporting revenues of $1.58 billion, up 3.6% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Is Mercury General a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Mercury General’s revenue to be flat year on year at $1.37 billion, in line with its flat revenue from the same quarter last year. Adjusted earnings are expected to come in at $2.56 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mercury General has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Mercury General’s peers in the property & casualty insurance segment, some have already reported their Q4 results, giving us a hint as to what we can expect. First American Financial delivered year-on-year revenue growth of 21.6%, beating analysts’ expectations by 15.2%, and Stewart Information Services reported revenues up 19.6%, topping estimates by 2.5%. First American Financial traded up 2.8% following the results while Stewart Information Services was also up 2.9%.
Read our full analysis of First American Financial’s results here and Stewart Information Services’s results here.
Investors in the property & casualty insurance segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. Mercury General is up 4.6% during the same time and is heading into earnings with an average analyst price target of $100 (compared to the current share price of $93.47).
P.S. STOP buying the AI stocks everyone's talking about. The real money? It’s in the profitable pick nobody’s watching yet. We’ve identified an AI profit machine that’s flying under Wall Street’s radar—for now. We can’t keep this research public forever—grab your FREE copy before we pull it offline. GO HERE NOW.