The Travelers Companies Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Travelers Companies, Inc. (NYSE:TRV) will unveil its latest earnings on Tuesday, January 24, 2012. 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.

The Travelers Companies, Inc. Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.51 per share, a decline of 20.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.58. Between one and three months ago, the average estimate moved down. It also has dropped from $1.52 during the last month. Analysts are projecting profit to rise by 47.3% versus last year to $3.30.

Past Earnings Performance: The company is looking to break the streak of missing estimates in the past two quarters. Last quarter, it fell short of analyst expectations by reporting net income of 79 cents per share against an estimate of profit of 92 cents per share. The quarter before that, it missed forecasts by 29 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 4.4% in revenue from the year-earlier quarter to $5.46 billion.

Analyst Ratings: Analysts are bullish on this stock with 11 analysts rating it as a buy, three rating it as a sell and seven rating it as a hold.

A Look Back: In the third quarter, profit fell 66.9% to $333 million (79 cents a share) from $1 billion ($2.11 a share) the year earlier, missing analyst expectations. Revenue fell 1.2% to $6.41 billion from $6.48 billion.

Key Stats:

A year-over-year revenue decrease in the third quarter snapped a streak of two consecutive quarters of revenue increases. Revenue rose 3.4% in the second quarter and 2.6% in the first quarter.

Competitors to Watch: American Financial Group (NYSE:AFG), White Mountains Insurance Group, Ltd. (NYSE:WTM), RLI Corp. (NYSE:RLI), The Chubb Corporation (NYSE:CB), W.R. Berkley Corporation (NYSE:WRB), CNA Financial Corporation (NYSE:CNA), XL Group plc (NYSE:XL), HCC Insurance Hldgs., Inc. (NYSE:HCC), and Markel Corporation (NYSE:MKL).

Stock Price Performance: During October 20, 2011 to January 18, 2012, the stock price had risen $5.76 (10.6%) from $54.13 to $59.89. The stock price saw one of its best stretches over the last year between December 19, 2011 and December 27, 2011 when shares rose for six-straight days, rising 5% (+$2.82) over that span. It saw one of its worst periods between July 26, 2011 and August 2, 2011 when shares fell for six-straight days, falling 4.7% (-$2.60) over that span.

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

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