Reinsurance Group of America Earnings: Everything You Must Know Now

Reinsurance Group of America Inc. (NYSE:RGA) 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.

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Reinsurance Group of America Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.55% to $1.65 in the quarter versus EPS of $1.52 in the year-earlier quarter.

Revenue: Rose 13.44% to $2.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Reinsurance Group of America Inc. reported adjusted EPS income of $1.65 per share. By that measure, the company beat the mean analyst estimate of $1.61. It beat the average revenue estimate of $2.4 billion.

Quoting Management: A. Greig Woodring, president and chief executive officer, commented, ÔÇťOverall, we are pleased with our first-quarter results. Strong results from our asset-intensive business helped offset slightly elevated claims experience in certain markets. Premium growth was in line with expectations. Annualized operating return on equity was 10 percent for the quarter, a reasonable result given the low interest rate environment and first-quarter claims seasonality. Additionally, we continue to work through a challenging environment in Australia. On a trailing 12-month basis, operating return on equity was 11 percent.”

Key Stats (on next page)…

Revenue decreased 4.48% from $2.72 billion in the previous quarter. EPS decreased 32.38% from $2.44 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 $1.85 to a profit $1.84. For the current year, the average estimate has moved up from a profit of $7.35 to a profit of $7.37 over the last ninety days.

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