Axis Capital Holdings Limited Earnings Cheat Sheet: Beats Wall Street

Axis Capital Holdings Limited (NASDAQ:AXS) posted lower net income in the third quarter compared with a year-earlier period. Axis Capital Holdings, through its subsidiaries, provides a range of insurance and reinsurance products to insureds and reinsureds worldwide operations with main locations in Bermuda, the United States, and Europe.

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Axis Capital Holdings Earnings Cheat Sheet for the Third Quarter

Results: Net income for Axis Capital Holdings Limited fell to $212.1 million ($1.66 per share) vs. $238.8 million ($1.78 per share) a year earlier. This is a decline of 14.5% from the year earlier quarter.

Revenue: Remained constant at $948.1 million.

Actual vs. Wall St. Expectations: AXS beat the mean analyst estimate of 76 cents per share. It beat the average revenue estimate of $652.5 million.

Quoting Management: Commenting on the third quarter 2011 financial results, John Charman, Chief Executive Officer and President of AXIS Capital, stated: “In the quarter, we achieved a modest increase in diluted book value per share and generated operating income of $95 million, driven by strong underwriting results producing a combined ratio of 91.5%. Our net written premiums increased by more than 8% in the quarter, as our underwriting units fought hard to find opportunities to grow profitably. Our results were, however, adversely impacted by a reduction in the valuation of our alternative investments due to the extreme volatility in the financial markets as well as continued pressure on new money yields.”

Key Stats:

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by one cent, and in the first quarter, it fell short by 28 cents.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is $1.11 per share, up from $1.09 ninety days ago. The average estimate for the fiscal year is now 60 cents per share, a rise from the 84 cents predicted ninety days ago.

Competitors to Watch: Aspen Insurance Hldgs. Ltd. (NYSE:AHL), Validus Holdings, Ltd. (NYSE:VR), RenaissanceRe Hldgs. Ltd. (NYSE:RNR), PartnerRe Ltd. (NYSE:PRE), Flagstone Reinsurance Hldgs. SA (NYSE:FSR), Platinum Underwriters Hldgs., Ltd. (NYSE:PTP), Montpelier Re Hldgs. Ltd. (NYSE:MRH), Everest Re Group, Ltd. (NYSE:RE), and Maiden Holdings, Ltd. (NASDAQ:MHLD).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)