For the quarter ended December 2024, Arch Capital Group (ACGL) reported revenue of $4.55 billion, up 23.8% over the same period last year. EPS came in at $2.26, compared to $2.49 in the year-ago quarter.
The reported revenue represents a surprise of +6.14% over the Zacks Consensus Estimate of $4.28 billion. With the consensus EPS estimate being $1.85, the EPS surprise was +22.16%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Arch Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Loss Ratio - Total: 57.5% versus 58.7% estimated by five analysts on average.
- Combined Ratio - Total: 85% compared to the 87.3% average estimate based on five analysts.
- Expense Ratio - Other Operating Expense Ratio: 9.9% versus 10.1% estimated by four analysts on average.
- Expense Ratio - Total Acquisition Expense Ratio: 17.6% compared to the 18.6% average estimate based on four analysts.
- Revenues- Net investment income: $405 million compared to the $415.62 million average estimate based on five analysts. The reported number represents a change of +29.4% year over year.
- Revenues- Net premiums earned: $4.14 billion versus $3.87 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +23.9% change.
- Revenues- Net premiums earned- Insurance Segment: $1.93 billion versus the four-analyst average estimate of $1.66 billion. The reported number represents a year-over-year change of +33.4%.
- Revenues- Net premiums earned- Reinsurance Segment: $1.90 billion versus $1.92 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +17.5% change.
- Revenues- Net premiums earned- Mortgage Segment: $306 million compared to the $280.41 million average estimate based on four analysts. The reported number represents a change of +11.3% year over year.
- Revenues- Other underwriting income (loss): $6 million versus $4.39 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -40% change.
- Revenues- Equity in net income (loss) of investment funds accounted for using the equity method: $143 million compared to the $60.02 million average estimate based on three analysts. The reported number represents a change of +40.2% year over year.
- Revenues- Other income (loss): $12 million versus the three-analyst average estimate of $4.67 million. The reported number represents a year-over-year change of -29.4%.
Shares of Arch Capital have returned +3.7% over the past month versus the Zacks S&P 500 composite's +2.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Arch Capital Group Ltd. (ACGL) : Free Stock Analysis Report
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