The Hanover Insurance Group Inc. (NYSE:THG) 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.
The Hanover Insurance Group Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 30.69% to $1.32 in the quarter versus EPS of $1.01 in the year-earlier quarter.
Revenue: Decreased 4.02% to $1.08 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: The Hanover Insurance Group Inc. reported adjusted EPS income of $1.32 per share. By that measure, the company beat the mean analyst estimate of $1.07. It missed the average revenue estimate of $1.08 billion.
Quoting Management: “We are pleased to start 2013 with strong earnings and positive momentum on all of our strategic priorities. Underlying profitability in our domestic operations is expanding. And, while we clearly have more work to do, our results this quarter and the progress we are making provide us with continued confidence in future margin expansion and our ability to execute on our strategic and financial goals for the year,” said Frederick H. Eppinger, chief executive officer at The Hanover.
Key Stats (on next page)…
Revenue decreased 9.06% from $1.18 billion in the previous quarter. EPS increased to $1.32 in the quarter versus EPS of $-1.65 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 $0.72 to a profit $0.83. For the current year, the average estimate has moved up from a profit of $3.71 to a profit of $3.76 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)