Everest Re Group Earnings: Here’s Why the Stock is Up Now

Everest Re Group Ltd. (NYSE:RE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.06%.

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Everest Re Group Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 31.25% to $5.88 in the quarter versus EPS of $4.48 in the year-earlier quarter.

Revenue: Decreased 12.9% to $1.09 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Everest Re Group Ltd. reported adjusted EPS income of $5.88 per share. By that measure, the company beat the mean analyst estimate of $4.39. It beat the average revenue estimate of $1.05 billion.

Quoting Management: Commenting on the Company’s results, Chairman and Chief Executive Officer, Joseph V. Taranto said, “This was a record quarter for Everest with 13% growth in premium, 25% growth in operating earnings, and an annualized net income return on equity of 25%. Clearly the industry benefitted from a quarter without catastrophe losses but Everest’s performance is also the result of a targeted growth strategy aimed at broadening its book and improving the risk-adjusted returns. We continue to see opportunities and are very excited about the future prospects for Everest.”

Key Stats (on next page)…

Revenue decreased 14.51% from $1.27 billion in the previous quarter. EPS increased 635% from $0.80 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 $3.91 to a profit $3.96. For the current year, the average estimate has moved up from a profit of $13.55 to a profit of $14.66 over the last ninety days.

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