RLI Earnings: Here’s Why Investors are Excited Now

RLI Corp. (NYSE:RLI) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.11%.

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RLI Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.33% to $1.04 in the quarter versus EPS of $0.96 in the year-earlier quarter.

Revenue: Decreased 2.01% to $160.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: RLI Corp. reported adjusted EPS income of $1.04 per share. By that measure, the company missed the mean analyst estimate of $1.05. It beat the average revenue estimate of $151.59 million.

Quoting Management: Last year we delivered solid results, achieving our 17th consecutive year of underwriting income, and Im pleased to report a strong start in 2013, said RLI Corp. Chairman & CEO Jonathan E. Michael. We produced an 86.2 combined ratio and almost 5% growth in book value per share in the first quarter. Gross premium growth hit 10% as positive rate momentum and the impact of growth initiatives carried through to the first quarter, particularly in our Casualty segment.

Key Stats (on next page)…

Revenue decreased 6.24% from $171.39 million in the previous quarter. EPS increased 16.85% from $0.89 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.11 to a profit $1.16. For the current year, the average estimate has moved up from a profit of $4.2 to a profit of $4.31 over the last ninety days.

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