Axis Capital Earnings: Here’s Why the Stock is Up Now

Axis Capital Holdings Ltd. (NYSE:AXS) 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. Shares are up 0.59%.

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Axis Capital Holdings Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 79.44% to $1.92 in the quarter versus EPS of $1.07 in the year-earlier quarter.

Revenue: Rose 5.17% to $1.03 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Axis Capital Holdings Ltd. reported adjusted EPS income of $1.92 per share. By that measure, the company beat the mean analyst estimate of $1.19. It missed the average revenue estimate of $1.42 billion.

Quoting Management: Albert Benchimol, President and CEO of AXIS Capital, said “AXIS had a very good first quarter, with solid contributions from both our insurance and reinsurance segments. Overall, gross premiums written were up 15%. Both segments contributed strong and diversified premium growth as well as solid underwriting profits. Our operating ROE for the quarter was 17.1% and we ended the quarter with record diluted book value per share of $44.67, an increase of 4% from year-end 2012 and 13% over the last twelve months.”

Key Stats (on next page)…

Revenue increased 5.39% from $975.46 million in the previous quarter. EPS increased to $1.92 in the quarter versus EPS of $-0.23 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 $1.07 to a profit $1.16. For the current year, the average estimate has moved up from a profit of $3.91 to a profit of $4.32 over the last ninety days.

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