) is set to report fourth-quarter 2013 results on Jan 22. Last
quarter, the company had posted a surprise of 48.9%. Let us
see how things are shaping up for this announcement.
owth Factors this Past Quarter
RLI Corp. is expected to benefit from diversification into crop
and other assumed property reinsurance, expansion of its
underwriting team, focus on new markets and product expansion
A favorable rate environment is expected to aid results.
Furthermore, a benign catastrophe environment should also boost
RLI Corp.'s underwriting results.
RLI Corp. remains focused on returning value to its shareholders.
It approved a special dividend of $3.00 in mid-Nov 2013,
testifying the inherent strength of its balance sheet.
However, a low interest rate environment is expected to weigh on
net investment results.
Our proven model does not conclusively show that RLI Corp. is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Zero Zacks ESP
: That is because both the Most Accurate estimate and the
Zacks Consensus Estimate stand at 56 cents. That leads to an ESP
Zacks Rank #3 (Hold)
: RLI Corp.'s Zacks Rank #3 when combined with a zero earnings
ESP makes surprise prediction difficult. We caution against
stocks with Zacks Rank #4 and 5 (Sell-rated stocks) going into
the earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
Aspen Insurance Holdings Ltd
) with earnings ESP of +8.49% and a Zacks Rank #1 (Strong Buy)
) with earnings ESP of +11.24% and a Zacks Rank #1
The Travelers Companies, Inc
) with earnings ESP of +0.479% and a Zacks Rank #2 (Buy)
ASPEN INS HLDGS (AHL): Free Stock Analysis
PARTNERRE LTD (PRE): Free Stock Analysis
RLI CORP (RLI): Free Stock Analysis Report
TRAVELERS COS (TRV): Free Stock Analysis
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