RenaissanceRe Holdings Earnings: Here’s Why Shares are Down Now

RenaissanceRe Holdings Ltd. (NYSE:RNR) 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. Shares are down 0.40%.

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RenaissanceRe Holdings Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 31.54% to $3.92 in the quarter versus EPS of $2.98 in the year-earlier quarter.

Revenue: Decreased 3.71% to $343.32 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: RenaissanceRe Holdings Ltd. reported adjusted EPS income of $3.92 per share. By that measure, the company beat the mean analyst estimate of $3.06. It beat the average revenue estimate of $331.29 million.

Quoting Management: Neill A. Currie, CEO, commented: “We enjoyed strong first quarter results, with an annualized operating ROE of 22.5% and 4.8% growth in tangible book value per share plus dividends for the quarter. Our results reflect strong underwriting profits, principally driven by our high-quality portfolio, the absence of significant catastrophe losses in the quarter, and solid total returns in our investment portfolio.”

Key Stats (on next page)…

Revenue decreased 1.47% from $348.43 million in the previous quarter. EPS increased 503.08% from $0.65 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 $2.57 to a profit $2.55. For the current year, the average estimate has moved up from a profit of $9.08 to a profit of $9.54 over the last ninety days.

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