The Travelers Companies, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Travelers Companies, Inc. (AMEX:TRV) will unveil its latest earnings on Thursday, July 21, 2011. The Travelers Companies, Inc. 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 a loss of 62 cents per share, a swing from profit of $1.39 in the year earlier quarter. During the past three months, the average estimate has moved down from $1.56. Between one and three months ago, the average estimate moved down and dropped from a loss of 30 cents during the last month. For the year, analysts are projecting net income of $4.31 per share, a decline of 31.2% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of $1.89 per share versus a mean estimate of net income of $1.54 per share.

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Wall St. Revenue Expectations: On average, analysts predict $5.81 billion in revenue this quarter, a rise of 2.1% from the year ago quarter. Analysts are forecasting total revenue of $22.21 billion for the year, a rise of 2.6% from last year’s revenue of $21.64 billion.

Analyst Ratings: Analysts are bullish on Travelers Companies as nine analysts rate it as a buy, two rate it as a sell and 10 rate it as a hold.

Key Stats:

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 0.7% over the past four quarters. The quarter hit the hardest was the fourth quarter of the last fiscal year, that saw a 30.4% drop.

Revenue rose in the first quarter after seeing a drop the quarter before. Revenue rose 2.6% to $6.28 billion in the first quarter from the year earlier. In the fourth quarter of the last fiscal year, revenue fell 1.9%.

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), American Insurance Group (NYSE:AIG) and Markel Corporation (NYSE:MKL).

Stock Price Performance: During May 18, 2011 to July 15, 2011, the stock price had fallen $4.68 (-7.5%) from $62.58 to $57.90. The stock price saw one of its best stretches over the last year between April 26, 2011 and May 3, 2011 when shares rose for six-straight days, rising 4.3% (+$2.64) over that span. It saw one of its worst periods between June 9, 2011 and June 15, 2011 when shares fell for five-straight days, falling 5.8% (-$3.54) over that span. Shares are up $2.90 (+5.3%) year to date.

(Source: Xignite Financials)

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