RLI Corp. (NYSE:RLI) 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.
RLI Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 8.55% to $1.27 in the quarter versus EPS of $1.17 in the year-earlier quarter.
Revenue: Rose 9.88% to $171.14 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: RLI Corp. reported adjusted EPS income of $1.27 per share. By that measure, the company beat the mean analyst estimate of $1.10. It missed the average revenue estimate of $193.47 million.
Quoting Management: “Our underwriters delivered excellent results, as evidenced by the 83 combined ratio and 11% growth in gross premiums written this quarter,” said RLI Corp. Chairman & CEO Jonathan E. Michael. “Premium production continues to benefit from improved market conditions and newer product initiatives, particularly within our casualty segment.”
Key Stats (on next page)…
Revenue increased 6.48% from $160.72 million in the previous quarter. EPS increased 22.12% from $1.04 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 $0.99 to a profit $0.95. For the current year, the average estimate has moved down from a profit of $4.26 to a profit of $4.14 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)