Platinum Underwriters Holdings Earnings: Here’s Why Shares are Up Now

Platinum Underwriters Holdings Ltd. (NYSE:PTP) 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 up 0.22%.

Platinum Underwriters Holdings Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 24.81% to $1.61 in the quarter versus EPS of $1.29 in the year-earlier quarter.

Revenue: Decreased 26.68% to $142.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Platinum Underwriters Holdings Ltd. reported adjusted EPS income of $1.61 per share. By that measure, the company beat the mean analyst estimate of $0.78. It missed the average revenue estimate of $152.43 million.

Quoting Management: Michael D. Price, Platinum’s Chief Executive Officer, commented, “Our performance reflects favorable prior period development, investment losses on a total return basis and active capital management. Our book value per common share was $59.67 as of June 30, 2013, a decrease of 0.9% from March 31, 2013.”

Key Stats (on next page)…

Revenue decreased 10.51% from $159.69 million in the previous quarter. EPS decreased 29.39% from $2.28 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 $0.77 to a profit $0.76. For the current year, the average estimate has moved up from a profit of $4.56 to a profit of $4.75 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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