Axis Capital Holdings Ltd. Earnings: Here’s Why Investors Like These Results

Axis Capital Holdings Ltd. (NYSE:AXS) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.38%.

Axis Capital Holdings Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 52.22% to $0.43 in the quarter versus EPS of $0.90 in the year-earlier quarter.

Revenue: Rose 9.41% to $1.05 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Axis Capital Holdings Ltd. reported adjusted EPS income of $0.43 per share. By that measure, the company missed the mean analyst estimate of $0.50. It beat the average revenue estimate of $859.62 million.

Quoting Management: Albert Benchimol, President and CEO of AXIS Capital said “For the year-to-date, we have delivered a very healthy annualized operating ROACE of 10.9%. This year-to-date result is indicative of the ability of our portfolio to absorb volatility including that presented by a quarter like this one, which was marked by a very high frequency of unrelated small and mid-sized cat and weather events around the globe.”

Key Stats (on next page)…

Revenue increased 1.72% from $1.03 billion in the previous quarter. EPS decreased 77.6% from $1.92 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 $0.81 to a profit $0.83. For the current year, the average estimate has moved down from a profit of $5.07 to a profit of $4.53 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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