Countdown to RLI Corp. (RLI) Q1 Earnings: A Look at Estimates Beyond Revenue and EPS

Wall Street analysts expect RLI Corp. (RLI) to post quarterly earnings of $1.63 per share in its upcoming report, which indicates no change from the year-ago quarter. Revenues are expected to be $393.84 million, up 17.6% from the year-ago quarter.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

Given this perspective, it's time to examine the average forecasts of specific RLI Corp. metrics that are routinely monitored and predicted by Wall Street analysts.

Analysts forecast 'Net premiums earned' to reach $358.75 million. The estimate indicates a change of +16.6% from the prior-year quarter.

According to the collective judgment of analysts, 'Net investment income' should come in at $35.10 million. The estimate points to a change of +29.6% from the year-ago quarter.

Analysts' assessment points toward 'Net premiums earned- Surety segment' reaching $35.26 million. The estimate points to a change of +7.1% from the year-ago quarter.

The average prediction of analysts places 'Net premiums earned- Casualty segment' at $198.65 million. The estimate indicates a change of +6.8% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Net premiums earned- Property segment' of $125.16 million. The estimate indicates a change of +41% from the prior-year quarter.

It is projected by analysts that the 'Net unrealized losses on equity securities' will reach -$15.44 million. The estimate points to a change of -199.6% from the year-ago quarter.

Based on the collective assessment of analysts, 'Expense Ratio- Total' should arrive at 40.0%. The estimate compares to the year-ago value of 40.7%.

Analysts predict that the 'Loss Ratio- Total' will reach 41.4%. The estimate is in contrast to the year-ago figure of 37.2%.

The combined assessment of analysts suggests that 'Combined Ratio (Underwriting income ratio) - Total' will likely reach 81.3%. Compared to the current estimate, the company reported 77.9% in the same quarter of the previous year.

View all Key Company Metrics for RLI Corp. here>>>

Over the past month, RLI Corp. shares have recorded returns of -5.4% versus the Zacks S&P 500 composite's -1.1% change. Based on its Zacks Rank #3 (Hold), RLI will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Free Report – The Bitcoin Profit Phenomenon

Zacks Investment Research has released a Special Report to help you pursue massive profits from the world’s first and largest decentralized form of money.

No guarantees for the future, but in the past three presidential election years, Bitcoin’s returns were as follows: 2012 +272.4%, 2016 +161.1%, and 2020 +302.8%.

Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.

Download Now – Today It’s FREE >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

RLI Corp. (RLI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.