The Travelers Companies Earnings: Beats Estimates

S&P 500 (NYSE:SPY) component The Travelers Companies Inc. (AMEX:TRV) reported net income above Wall Street’s expectations for the third quarter. The Travelers Companies is a holding company that is engaged in providing commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals.

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The Travelers Companies Inc. Earnings Cheat Sheet

Results: Net income for the insurance-property and casualty rose to $864 million ($2.21 per share) vs. $333 million (79 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 1.6% to $6.51 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Travelers Companies Inc. beat the mean analyst estimate of $1.30 per share. It beat the average revenue estimate of $5.98 billion.

Quoting Management: “We are very pleased with our strong results this quarter,” commented Jay Fishman, Chairman and Chief Executive Officer. “Our underwriting performance reflected a GAAP combined ratio of 90.3%, which benefited from lower weather-related losses as well as the rate gains we have achieved during the past year. Net investment income benefited from strong results in our non-fixed income portfolio.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of $1.26 versus a mean estimate of net income of $1.37 per share.

Revenue rose last quarter after dropping in the previous quarter. Revenue fell 0.5% to $6.36 billion in the second quarter from the year earlier.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.61 a share to $1.64 over the last seven days. For the fiscal year, the average estimate has moved down from $6.37 a share to $6.24 over the last thirty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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