Amerisafe Earnings: Here’s Why Investors are Ambivalent Now

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.

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Amerisafe, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.44% to $0.47 in the quarter versus EPS of $0.45 in the year-earlier quarter.

Revenue: Rose 9.99% to $86.51 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Amerisafe, Inc. reported adjusted EPS income of $0.47 per share. By that measure, the company missed the mean analyst estimate of $0.48. It missed the average revenue estimate of $88.72 million.

Quoting Management: Commenting on these results, Allen Bradley, AMERISAFE’s Chairman and Chief Executive Officer, stated, “The workers’ compensation market continued to firm in the first quarter of 2013 as underwriters refocused on underwriting profitability. We expect workers’ compensation pricing improvement to continue through at least the remainder of the year. AMERISAFE is pleased with our first quarter results in terms of premium growth and underwriting profitability.”

Key Stats (on next page)…

Revenue increased 1.09% from $85.58 million in the previous quarter. EPS decreased 4.08% from $0.49 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 $0.44 to a profit $0.49. For the current year, the average estimate has moved up from a profit of $1.84 to a profit of $2.03 over the last ninety days.

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