Arch Capital Group Ltd. Fourth Quarter Earnings Sneak Peek

Arch Capital Group Ltd. (NASDAQ:ACGL) will unveil its latest earnings on Tuesday, February 14, 2012. Arch Capital Group provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries.

Arch Capital Group Ltd. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 65 cents per share, a decline of 24.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 82 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 77 cents during the last month. Analysts are projecting profit to rise by 38.5% versus last year to $1.92.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 15 cents, reporting profit of 78 cents per share against a mean estimate of net income of 63 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 9.4% in revenue from the year-earlier quarter to $528.2 million.

Analyst Ratings: Analysts are bullish on this stock with nine analysts rating it as a buy, one rating it as a sell and six rating it as a hold.

A Look Back: In the third quarter, profit rose 14.2% to $169 million ($1.19 a share) from $148 million (92 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 4.1% to $765 million from $797.4 million.

Key Stats:

The increase in profit in the third quarter broke a streak of three consecutive quarters of year-over-year profit decreases. Net income dropped 59.6% in the second quarter, 88.1% in the first quarter and 19.6% in the fourth quarter of the last fiscal year.

Revenue has fallen in the past four quarters. Revenue declined 0.1% in the second quarter from the year earlier, dropped 8.3% in first quarter from the year-ago quarter and 10.9% in the fourth quarter of the last fiscal year.

Stock Price Performance: During November 10, 2011 to February 8, 2012, the stock price had risen $2.11 (5.9%) from $35.77 to $37.88. The stock price saw one of its best stretches over the last year between January 30, 2012 and February 8, 2012 when shares rose for eight-straight days, rising 6.5% (+$2.31) over that span. It saw one of its worst periods between July 26, 2011 and August 8, 2011 when shares fell for 10-straight days, falling 12.6% (-$4.34) over that span.

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

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