Navigators Group Earnings: Here’s Why Investors Don’t Like These Results

Navigators Group Inc. (NASDAQ:NAVG) 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. Shares are down 0.71%.

Navigators Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 6.82% to $0.82 in the quarter versus EPS of $0.88 in the year-earlier quarter.

Revenue: Rose 3.06% to $222.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Navigators Group Inc. reported adjusted EPS income of $0.82 per share. By that measure, the company beat the mean analyst estimate of $0.78. It missed the average revenue estimate of $222.78 million.

Quoting Management: Stan Galanski, President and Chief Executive Officer, commented, “We are pleased with our second quarter results, reflecting solid underwriting profit in marine, specialty casualty and international D&O. We achieved renewal rate increases in most of our specialty product lines and we experienced particularly strong premium growth in our U.S. Excess and Surplus Lines businesses. Our underwriters continued to avoid business that failed to meet our required terms or price. Cash flow for the quarter was strong. Despite a decline in unrealized gains in our bond portfolio as a result of rising interest rates, our investment portfolio performed reasonably well and we remain confident in the quality of our invested assets.”

Key Stats (on next page)…

Revenue increased 0.51% from $221.38 million in the previous quarter. EPS increased 9.33% from $0.75 in the previous quarter.

Looking Forward: 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 $0.7 and has not changed. For the current year, the average estimate is a profit of $3.05, which is the same with that ninety days ago.

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