Amerisafe, Inc. (NASDAQ:AMSF) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Amerisafe, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 127.78% to $0.41 in the quarter versus EPS of $0.18 in the year-earlier quarter.
Revenue: Rose 14.18% to $87.51 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Amerisafe, Inc. reported adjusted EPS income of $0.41 per share. By that measure, the company missed the mean analyst estimate of $0.50. It missed the average revenue estimate of $90.84 million.
Quoting Management: Allen Bradley, AMERISAFE’s Chairman and Chief Executive Officer, stated, “The workers’ compensation market remains attractive with strong pricing and stable frequency trends. Investment yields, however, continue to create headwinds causing many carriers to reassess their underwriting approach and remain disciplined. The combination of a disciplined marketplace and expanding residual market provides Amerisafe with an attractive underwriting environment. Our continued focus on risk selection and pricing, positions Amerisafe for profitable growth. As such, we remain upbeat in our outlook for the workers’ compensation market as well as the prospects for Amerisafe.”
Key Stats (on next page)…
EPS decreased 12.77% from $0.47 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 $0.53 to a profit $0.52. For the current year, the average estimate has moved down from a profit of $2.08 to a profit of $2.06 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)