Aspen Insurance Holdings Earnings: Everything You Must Know Now

Aspen Insurance Holdings Ltd. (NYSE:AHL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Aspen Insurance Holdings Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 52.27% to $0.63 in the quarter versus EPS of $1.32 in the year-earlier quarter.

Revenue: Decreased 4.14% to $544 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Aspen Insurance Holdings Ltd. reported adjusted EPS income of $0.63 per share. By that measure, the company beat the mean analyst estimate of $0.61. It missed the average revenue estimate of $567.43 million.

Quoting Management: Chris O’Kane, Chief Executive Officer commented, “In the second quarter, Aspen delivered solid operating results in an above average catastrophe quarter, with our combined ratio excluding catastrophes improving modestly from last year. We continue to make progress on the three initiatives we outlined earlier this year to drive increased profitability. We have released $70 million of capital in our U.S. property insurance line and our U.S. operations overall continue to gain scale and momentum towards sustainable profitability. We executed over $240 million of share repurchases in the first six months of the year and continued to carefully reallocate a portion of our investment portfolio to achieve higher risk-adjusted returns. We remain intensely focused on executing these initiatives and achieving increased profitability.”

Key Stats (on next page)…

Revenue decreased 5.65% from $576.6 million in the previous quarter. EPS decreased 40.57% from $1.06 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 $0.32 to a profit $0.34. For the current year, the average estimate has moved down from a profit of $3.37 to a profit of $3.02 over the last ninety days.

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