CNA Financial (CNA) Q1 Earnings: How Key Metrics Compare to Wall Street Estimates

For the quarter ended March 2024, CNA Financial (CNA) reported revenue of $3.06 billion, up 10% over the same period last year. EPS came in at $1.30, compared to $1.19 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $2.94 billion, representing a surprise of +4.14%. The company delivered an EPS surprise of -5.11%, with the consensus EPS estimate being $1.37.

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 CNA Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Combined ratio-Total Property & Casualty: 94.6% versus the two-analyst average estimate of 94.7%.
  • Expense Ratio-Total Property & Casualty: 30.1% compared to the 31.8% average estimate based on two analysts.
  • Loss & LAE ratio- Total Property & Casualty: 64.1% compared to the 62.6% average estimate based on two analysts.
  • Non-insurance warranty revenue: $407 million versus $428.91 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a 0% change.
  • Net Earned Premiums: $2.44 billion compared to the $2.35 billion average estimate based on two analysts. The reported number represents a change of +8.6% year over year.
  • Other Revenues: $9 million versus $6.62 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +28.6% change.
  • Net investment income: $609 million versus $582.84 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +16% change.
View all Key Company Metrics for CNA Financial here>>>

Shares of CNA Financial have returned +0.7% over the past month versus the Zacks S&P 500 composite's -1.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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