The Navigators Group Earnings: Beats Wall Street Expectations

The Navigators Group Inc. (NASDAQ:NAVG) reported net income above Wall Street’s expectations for the second quarter. Navigators Group is an international insurance holding company focusing on specialty products within the overall property/casualty insurance market.

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The Navigators Group Inc. Earnings Cheat Sheet

Results: Net income for The Navigators Group Inc. rose to $14.9 million ($1.05 per share) vs. $9.5 million (60 cents per share) in the same quarter a year earlier. This marks a rise of 56.8% from the year-earlier quarter.

Revenue: Rose 11.1% to $215.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Navigators Group Inc. beat the mean analyst estimate of 73 cents per share. It beat the average revenue estimate of $191.1 million.

Quoting Management: Stan Galanski, President and Chief Executive Officer, commented, “We are pleased to have produced profitable underwriting results and particularly with the performance of our Lloyd’s unit. Our underwriters continue to be highly selective and focused on identifying good opportunities in what are generally improving market conditions. We continue to invest in expanding our underwriting teams as well as our executive management.”

Key Stats:

Revenue has now increased for three consecutive quarters. In the first quarter, revenue rose 16.4% to $197 million while the figure rose 2.7% in the fourth quarter of the last fiscal year from the year earlier.

The company has beaten estiamtes for two quarters in a row. In the first quarter, it topped expectations with net income of 48 cents versus a mean estimate of net income of 42 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 62 cents per share, down from 64 cents ninety days ago. For the fiscal year, the average estimate has moved up from $2.52 a share to $2.61 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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