Mercury General Corporation (NYSE:MCY) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Mercury General Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 2.82% to $0.69 in the quarter versus EPS of $0.71 in the year-earlier quarter.
Revenue: Decreased 4.45% to $690.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Mercury General Corporation reported adjusted EPS income of $0.69 per share. By that measure, the company beat the mean analyst estimate of $0.48. It missed the average revenue estimate of $703.27 million.
Quoting Management: CEO and President Gabe Tirador commented: “I am pleased to report our first quarter 2013 combined ratio was 97.9% and our written premiums grew by 4.9%, our ninth consecutive quarter of written premium growth. The Company is executing on our plan to improve profitability and we are experiencing continued improvement in our financial results outside of California.”
Key Stats (on next page)…
Revenue increased 1.36% from $681.21 million in the previous quarter. EPS increased to $0.69 in the quarter versus EPS of $-0.17 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.61 to a profit $0.59. For the current year, the average estimate has moved down from a profit of $2.44 to a profit of $2.29 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)