The Travelers Companies Earnings: Here’s Why Investors Like These Results

The Travelers Companies, Inc. (NYSE:TRV) 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. Shares are up 0.91%

The Travelers Companies, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 69.05% to $2.13 in the quarter versus EPS of $1.26 in the year-earlier quarter.

Revenue: Decreased 8.41% to $5.82 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Travelers Companies, Inc. reported adjusted EPS income of $2.13 per share. By that measure, the company beat the mean analyst estimate of $1.6. It missed the average revenue estimate of $5.97 billion.

Quoting Management: Results for the quarter were very strong, with net income of $925 million and return on equity of 14.6%, commented Jay Fishman, Chairman and Chief Executive Officer. Operating return on equity was 14.2% for the quarter and 15.0% on a year-to-date basis, a significant improvement over prior year results primarily due to lower catastrophe losses and continued improvement in our underlying underwriting margins.

Key Stats (on next page)…

Revenue decreased 7.96% from $6.33 billion in the previous quarter. EPS decreased 7.79% from $2.31 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 $1.62 to a profit $1.64. For the current year, the average estimate has moved up from a profit of $7.47 to a profit of $7.55 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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

More from The Cheat Sheet