Arch Capital Third Quarter Earnings Sneak Peek

Arch Capital Group Ltd. (NASDAQ:ACGL) will unveil its latest earnings on Monday, October 29, 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 analyst estimate is for net income of 80 cents per share, a rise of 2.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 55 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. Analysts are projecting profit to rise by 54.8% compared to last year’s $3.42.

Past Earnings Performance: Last quarter, the company beat estimates by 20 cents, coming in at profit of $1.02 a share versus the estimate of net income of 82 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, profit rose more than twofold to $220.3 million ($1.54 a share) from $98.3 million (67 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 8.6% to $842.5 million from $775.6 million.

Wall St. Revenue Expectations: On average, analysts predict $557.5 million in revenue this quarter, a rise of 9.1% from the year-ago quarter. Analysts are forecasting total revenue of $2.98 billion for the year, a rise of 11.6% from last year’s revenue of $2.67 billion.

Analyst Ratings: With eight analysts rating the stock as a buy, one rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 5.2% in the first quarter before climbing again in the second quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of more than twofold for the last four quarters.

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

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