S&P 500 (NYSE:SPY) component ACE Limited (NYSE:ACE) will unveil its latest earnings on Tuesday, July 26, 2011. ACE Ltd is a holding company of the ACE Group of Companies. It is a global provider of insurance and reinsurance products, serving the property and casualty insurance needs of individuals and businesses in a range of industries.
ACE Limited Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.70 per share, a decline of 15.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.90. Between one and three months ago, the average estimate moved down and dropped from $1.85 during the last month. For the year, analysts are projecting profit of $6.13 per share, a decline of 21.3% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 16 cents, reporting net income of 79 cents per share against a mean estimate of profit of 63 cents per share.
Wall St. Revenue Expectations: On average, analysts predict $3.68 billion in revenue this quarter, a rise of 7.6% from the year ago quarter. Analysts are forecasting total revenue of $14.29 billion for the year, a rise of 4.2% from last year’s revenue of $13.71 billion.
Analyst Ratings: Analysts are bullish on this stock with 16 analysts rating it as a buy, none rating it as a sell and three rating it as a hold.
A year-over-year revenue decrease in the first quarter snaps a streak of three consecutive quarters of revenue increases. Revenue fell 3.6% in the first quarter and rose 3.2%in the fourth quarter of the last fiscal year, 5.6% in the third quarter of the last fiscal year and 6% in the second quarter of the last fiscal year.
The decrease in profit in the first quarter breaks a streak of three consecutive quarters of year-over-year profit increases. Net income fell 65.7% in the first quarter from the year earlier, while the figure rose 5% in the fourth quarter of the last fiscal year, 36.6% in the third quarter of the last fiscal year and 26.5% in the second quarter of the last fiscal year.
Competitors to Watch: ACE Limited (NYSE:AEX), XL Group plc (NYSE:XL), Allied World Assurance Co Hldgs., AG. (NYSE:AWH), HCC Insurance Hldgs., Inc. (NYSE:HCC), Arch Capital Group Ltd. (NASDAQ:ACGL), American Intl. Group, Inc. (NYSE:AIG), American Financial Group (NYSE:AFG) and Aspen Insurance Hldgs. Ltd. (NYSE:AHL).
Stock Price Performance: During May 23, 2011 to July 20, 2011, the stock price had fallen $3.79 (-5.6%) from $67.52 to $63.73. The stock price saw one of its best stretches over the last year between March 23, 2011 and April 4, 2011 when shares rose for nine-straight days, rising 9% (+$5.50) over that span. It saw one of its worst periods between April 11, 2011 and April 20, 2011 when shares fell for eight-straight days, falling 3.5% (-$2.29) over that span. Shares are up $2.14 (+3.5%) year to date.
(Source: Xignite Financials)
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