Chubb Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Chubb (NYSE:CB) will unveil its latest earnings on Thursday, October 25, 2012. Chubb is a holding company that provides property and casualty insurance business to a wide range of customers.

Chubb Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.49 per share, a rise of 69.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.31. Between one and three months ago, the average estimate moved up. It has risen from $1.32 during the last month. For the year, analysts are projecting net income of $6.06 per share, a rise of 18.4% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 22 cents, coming in at profit of $1.37 a share versus the estimate of net income of $1.15 a share. It marked the fourth straight quarter of beating estimates.

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Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $10.75 (15.5%), from $69.55 to $80.30. The stock price saw one of its best stretches over the last year between August 13, 2012 and August 20, 2012, when shares rose for six straight days, increasing 2.1% (+$1.55) over that span. It saw one of its worst periods between July 3, 2012 and July 12, 2012 when shares fell for seven straight days, dropping 4% (-$2.94) over that span.

A Look Back: In the second quarter, profit fell 3.6% to $404 million ($1.48 a share) from $419 million ($1.42 a share) the year earlier, but exceeded analyst expectations. Revenue rose 0.7% to $3.42 billion from $3.4 billion.

Wall St. Revenue Expectations: On average, analysts predict $2.95 billion in revenue this quarter, a rise of 2.4% from the year-ago quarter. Analysts are forecasting total revenue of $12.03 billion for the year, a rise of 2.3% from last year’s revenue of $11.76 billion.

Key Stats:

The company is looking to build on last quarter’s top line growth, which snapped a string of revenue declines. Revenue fell 1.9% in the fourth quarter of the last fiscal year and 0.3% in the first quarter before climbing in the second quarter.

Heading into this earnings announcement, net income has dropped 19.8% on average for the last four quarters.

Analyst Ratings: With nine analysts rating the stock as a buy, two rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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