ACE Limited Third Quarter Earnings on Deck

S&P 500 (NYSE:SPY) component ACE Limited (NYSE:ACE) will unveil its latest earnings on Tuesday, October 25, 2011. ACE is a global provider of property and casualty insurance and reinsurance products to individuals and businesses.

ACE Limited Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.79 per share, a decline of 10.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.74. Between one and three months ago, the average estimate moved up. It has dropped from $1.82 during the last month. Analysts are projecting profit to rise by 15.9% versus last year to $6.55.

Past Earnings Performance: Last quarter, the company beat estimates by 33 cents, coming in at net income of $2.01 a share versus the estimate of profit of $1.68 a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $3.8 billion in revenue this quarter, a rise of 15.2% from the year ago quarter. Analysts are forecasting total revenue of $14.92 billion for the year, a rise of 8.8% from last year’s revenue of $13.71 billion.

Analyst Ratings: Analysts are bullish on this stock with 14 analysts rating it as a buy, none rating it as a sell and two rating it as a hold.

A Look Back: In the second quarter, profit fell 10.3% to $607 million ($1.77 a share) from $677 million ($1.98 a share) the year earlier, but exceeded analyst expectations. Revenue rose 13.1% to $4.25 billion from $3.76 billion.

Key Stats:

The company has seen net income fall in each of the last two quarters. Net income dropped 65.7% in the first quarter.

Revenue rose in the second quarter after seeing a drop the quarter before. In the first quarter, revenue fell 3.6%.

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), Zurich Financial Services (ZFSVY), American Financial Group (NYSE:AFG), Aspen Insurance Hldgs. Ltd. (NYSE:AHL), and Fairfax Financial Hldgs. Ltd. (FRFHF).

Stock Price Performance: During September 21, 2011 to October 19, 2011, the stock price had risen $6.05 (10.1%) from $59.89 to $65.94. 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% (+$5.46) 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% (-$2.28) over that span. Shares are up $4.70 (+7.7%) year to date.

(Source: Xignite Financials)

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