Mercury General Earnings Preview: Get Ahead of the Analysts

Mercury General (NYSE:MCY) will report earnings before markets open on Monday, April 29th. Mercury General Corporation is a specialty writer of all risk classifications of automobile insurance. The Company is an agency writer of private passenger automobile insurance in California. Mercury operates primarily in California with operations in several other states.

Here is your Cheat Sheet to Mercury General Earnings:

Earnings Expectations: Analysts expect earnings of $0.48 per share on revenues of $703.27 million. Currently, the company’s P/E ratio stands at 19.15.

Analyst Trends:

Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.59 and has not changed. For the current year, the average estimate is a profit of $2.29, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Mercury General has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 2,414 3,121 2,776 2,777 2,783
Diluted EPS ($) -4.42 7.32 2.78 3.49 2.13

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 749.45 722.68 647.70 731.78 681.21
Diluted EPS ($) 1.46 1.34 -0.10 1.21 -0.32

Past Performance:
Mercury General has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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