Arch Capital Group Earnings: Beats Estimates

Arch Capital Group Ltd. (NASDAQ:ACGL) reported net income above Wall Street’s expectations for the second quarter. Arch Capital Group provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries.

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Arch Capital Group Ltd. Earnings Cheat Sheet

Results: Net income for Arch Capital Group Ltd. rose to $212.6 million ($1.54 per share) vs. $98.3 million (65 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 8.6% to $842.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Arch Capital Group Ltd. beat the mean analyst estimate of 82 cents per share. It beat the average revenue estimate of $757.7 million.

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 11 cents in the first quarter, by 27 cents in the fourth quarter of the last fiscal year, and by 15 cents in the third quarter of the last fiscal year.

Net income has increased more than twofold year-over-year on average across the last five quarters. The biggest gain came in the first, when income climbed more than sixfold from the year-earlier quarter.

The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 5.2% to $815 million from the year-earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 52 cents a share to 54 cents over the last ninety days. The average estimate for the fiscal year is $2.99 per share, a rise from $2.80 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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