Axis Capital (AXS) reported $1.58 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 8.3%. EPS of $2.97 for the same period compares to $2.94 a year ago.
The reported revenue represents a surprise of -2.83% over the Zacks Consensus Estimate of $1.63 billion. With the consensus EPS estimate being $2.68, the EPS surprise was +10.82%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Axis Capital performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Combined Ratio - Total: 94.2% compared to the 92.2% average estimate based on three analysts.
- Net loss and loss expense ratio - Total: 60.4% versus 59.9% estimated by three analysts on average.
- General and Administrative Expense Ratio - Insurance: 12.9% compared to the 12.1% average estimate based on two analysts.
- Combined Ratio - Reinsurance: 90.9% versus the two-analyst average estimate of 117.5%.
- General and Administrative Expense Ratio - Reinsurance: 4% compared to the 4.9% average estimate based on two analysts.
- Acquisition Cost Ratio - Total: 20.1% versus 19.5% estimated by two analysts on average.
- Net loss and loss expense ratio - Insurance: 58.8% compared to the 57% average estimate based on two analysts.
- Net premiums earned: $1.38 billion compared to the $1.40 billion average estimate based on three analysts. The reported number represents a change of +8.8% year over year.
- Net investment income: $195.77 million versus $189.77 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +4.7% change.
- Net premiums earned- Insurance Segment: $1.03 billion compared to the $1.02 billion average estimate based on two analysts. The reported number represents a change of +11.9% year over year.
- Net premiums earned- Reinsurance Segment: $350.99 million versus the two-analyst average estimate of $372.38 million. The reported number represents a year-over-year change of +0.7%.
- Other insurance related income (loss): $7.02 million versus the two-analyst average estimate of $7.95 million. The reported number represents a year-over-year change of +16%.
Shares of Axis Capital have returned +2.1% over the past month versus the Zacks S&P 500 composite's +1.7% 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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