The Navigators Group Inc. Earnings Cheat Sheet: Net Income Sinks

The Navigators Group, Inc. (NASDAQ:NAVG) reported its results for the third quarter. Navigators Group is an international insurance holding company focusing on specialty products within the overall property/casualty insurance market.

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The Navigators Group Earnings Cheat Sheet for the Third Quarter

Results: Net income for The Navigators Group, Inc. fell to $13.9 million (92 cents per share) vs. $16.2 million ($1 per share) a year earlier. This is a decline of 14.3% from the year earlier quarter.

Revenue: Fell 0.6% to $191.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: NAVG beat the mean analyst estimate of 62 cents per share. It beat the average revenue estimate of $171 million.

Quoting Management: Navigators’ Chief Executive Officer Stan Galanski commented, “We are pleased to have met our primary objective of underwriting profitability while continuing to grow our book value per share. We achieved meaningful premium growth in targeted specialty niches while walking away from business that did not meet our underwriting and pricing requirements. Cash flow was strong and, despite ongoing investments in talent and technology, we were able to maintain our non-commission operating expenses about flat with third quarter 2010.”

Key Stats:

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by 19 cents, and in the first quarter, it fell short by 34 cents.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 2.6% to $194.3 million in the second quarter from the year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 69 cents per share, down from 78 cents ninety days ago. For the fiscal year, the average estimate has moved down from $1.70 a share to $1.37 over the last ninety days.

Competitors to Watch: W.R. Berkley Corporation (NYSE:WRB), Allied World Assurance Co Hldgs., AG. (NYSE:AWH), RLI Corp. (NYSE:RLI), White Mountains Insurance Group, Ltd. (NYSE:WTM), The Travelers Companies, Inc. (NYSE:TRV), Markel Corporation (NYSE:MKL), Global Indemnity plc (NASDAQ:GBLI), Tower Group, Inc. (NASDAQ:TWGP), and CNA Financial Corporation (NYSE:CNA).

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(Source: Xignite Financials)