ACE Limited Earnings: Here’s Why the Stock is Down Now

ACE Limited (NYSE:ACE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.27%.

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ACE Limited Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.85% to $2.17 in the quarter versus EPS of $2.05 in the year-earlier quarter.

Revenue: Decreased 9.25% to $3.8 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: ACE Limited reported adjusted EPS income of $2.17 per share. By that measure, the company beat the mean analyst estimate of $1.94. It beat the average revenue estimate of $3.33 billion.

Quoting Management: Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had an excellent first quarter and strong start to the year. We produced $746 million in after-tax operating income and our operating ROE was 12%, driven by strong underwriting results. We had a P&C combined ratio of 88.2% that benefited from excellent current accident year underwriting income as a result of both improved margin and growth in our U.S. and international businesses.”

Key Stats (on next page)…

Revenue decreased 18.97% from $4.69 billion in the previous quarter. EPS increased 100.93% from $1.08 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $2.01 to a profit $1.97. For the current year, the average estimate has moved down from a profit of $7.89 to a profit of $7.85 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]