Axis Capital Holdings Limited Second Quarter Earnings Sneak Peek

Axis Capital Holdings Limited (NASDAQ:AXS) will unveil its latest earnings on Wednesday, August 3, 2011. Axis Capital Holdings Ltd 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.

Axis Capital Holdings Limited Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 52 cents per share, a decline of 60.9% 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 $1.14. Between one and three months ago, the average estimate moved down and dropped from 99 cents during the last month. For the year, analysts are projecting a loss of 84 cents per share, a swing from net income of $4.60 last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported net loss of $3.65 per share versus a mean estimate of a loss of $3.37 per share. In fourth quarter of the last fiscal year, the company beat estimates by 19 cents.

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Wall St. Revenue Expectations: On average, analysts predict $799.8 million in revenue this quarter, a rise of 8.8% from the year ago quarter. Analysts are forecasting total revenue of $3.32 billion for the year, a rise of 5.4% from last year’s revenue of $3.15 billion.

Analyst Ratings: Analysts are bullish on this stock with seven analysts rating it as a buy, none rating it as a sell and six rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 13.7% to $929.8 million in first quarter. The figure rose 8.7% in the fourth quarter of the last fiscal year from the year earlier, climbed more than twofold in the third quarter of the last fiscal year from the year-ago quarter and 7.9% in the second quarter of the last fiscal year.

Axis Capital Holdings’ loss in the latest quarter follows profits in the previous three quarters. The company reported a loss of of $374.5 million in the first quarter, a profit of $273.6 million in the fourth quarter of the last fiscal year, a profit of $248.1 million in the third of the last fiscal year and a profit of $214.1 million in the second quarter of the last fiscal year.

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).

Stock Price Performance: During May 3, 2011 to July 28, 2011, the stock price had fallen $2.62 (-7.6%) from $34.46 to $31.84. The stock price saw one of its best stretches over the last year between July 18, 2011 and July 26, 2011 when shares rose for seven-straight days, rising 4.4% (+$1.37) over that span. It saw one of its worst periods between April 28, 2011 and May 11, 2011 when shares fell for 10-straight days, falling 6.2% (-$2.20) over that span. Shares are down $3.53 (-10%) year to date.

(Source: Xignite Financials)

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