Allied World Assurance Holdings Ltd. Earnings: Everything You Must Know Now

Allied World Assurance Company Holdings Ltd. (NYSE:AWH) had a loss and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Allied World Assurance Company Holdings Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-1.58 in the quarter versus EPS of $2.40 in the year-earlier quarter.

Revenue: Decreased 32.76% to $362.62 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Allied World Assurance Company Holdings Ltd. reported adjusted EPS loss of $-1.58 per share. By that measure, the company beat the mean analyst estimate of $-1.96. It missed the average revenue estimate of $449.33 million.

Quoting Management: President and Chief Executive Officer Scott Carmilani commented, “Allied World had a strong year in 2012. While Superstorm Sandy tempered our fourth quarter underwriting results, we still generated $493 million of net income for the full year, continuing to build value for our shareholders. Our diluted book value per share grew by over 15% in 2012, to $92.59. The company’s top line production grew by 20% to $2.3 billion in gross premiums written for the year, and we were able to achieve targeted growth in all three of our business segments.”

Key Stats (on next page)…

Revenue decreased 42.44% from $629.95 million in the previous quarter. EPS decreased to $-1.58 in the quarter versus EPS of $2.16 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.76 to a profit $1.79. For the current year, the average estimate has moved down from a profit of $7.48 to a profit of $5.09 over the last ninety days.

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