Arch Capital Group Ltd. Earnings Cheat Sheet: Beats Wall Street Expectations

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

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Arch Capital Group Earnings Cheat Sheet for the Third Quarter

Results: Net income for Arch Capital Group Ltd. rose to $162.5 million ($1.19 per share) vs. $148 million (92 cents per share) in the same quarter a year earlier. This marks a rise of 9.8% from the year earlier quarter.

Revenue: Fell 4.1% to $765 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ACGL beat the mean analyst estimate of 63 cents per share. It beat the average revenue estimate of $658.3 million.

Key Stats:

Last quarter’s profit increase breaks a streak of four consecutive quarters of year-over-year profit drops. In the second quarter, net income fell 59.6% from the year earlier, while the figure fell 88.1% in the first quarter, 19.6% in the fourth quarter of the last fiscal year and 47.3% in the third quarter of the last fiscal year.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 25 cents in the second quarter, by 33 cents in the first quarter, and by 8 cents in the fourth quarter of the last fiscal year.

Revenue has fallen in the past four quarters. Revenue declined 0.1% to $775.6 million in the second quarter. The figure fell 8.3% in the first quarter from the year earlier and dropped 10.9% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the fourth quarter has risen to 78 cents per share from 76 cents. Over the past three months, the average estimate for the fiscal year has climbed from $1.63 per to share to $1.95.

Competitors to Watch: Endurance Specialty Hldgs. Ltd. (NYSE:ENH), Alterra Capital Hldgs. Ltd. (NASDAQ:ALTE), Fairfax Financial Hldgs. Ltd. (FRFHF), Allied World Assurance Co Hldgs., AG. (NYSE:AWH), PartnerRe Ltd. (NYSE:PRE), W.R. Berkley Corporation (NYSE:WRB), Everest Re Group, Ltd. (NYSE:RE), ACE Limited (NYSE:ACE), Argo Group Intl. Hldgs., Ltd. (NASDAQ:AGII), and Axis Capital Holdings Ltd. (NYSE:AXS).

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(Source: Xignite Financials)