The Travelers Companies, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Travelers Companies, Inc. (AMEX:TRV) will unveil its latest earnings on Wednesday, October 19, 2011. 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 net income of 99 cents per share, a decline of 45.3% 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 $1.37. Between one and three months ago, the average estimate moved down. It also has dropped from $1.36 during the last month. Analysts are projecting profit to rise by 41.9% versus last year to $3.64.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported net loss of 91 cents per share versus a mean estimate of a loss of 62 cents per share. In the first quarter, the company beat estimates by 35 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 2.2% in revenue from the year-earlier quarter to $5.58 billion.

Analyst Ratings: Analysts are bullish on this stock with 10 analysts rating it as a buy, one rating it as a sell and eight rating it as a hold.

A Look Back: In the second quarter, the company swung to a loss of $364 million (88 cents a share) from a profit of $670 million ($1.35) a year earlier, missing analyst expectations. Revenue rose 3.4% to $6.39 billion from $6.18 billion.

Key Stats:

Travelers Companies’ loss in the latest quarter followed profits in the previous three quarters. The company reported a profit of $839 million in the first quarter, a profit of $894 million in the fourth of the last fiscal year and a profit of $1 billion in the third quarter of the last fiscal year.

The company’s revenue has risen for two straight quarters. In the first quarter, the figure rose 2.6%.

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 July 20, 2011 to October 13, 2011, the stock price had fallen $6.13 (-10.8%) from $56.58 to $50.45. 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% (+$2.62) 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% (-$2.62) over that span. Shares are down $4.08 (-7.5%) year to date.

(Source: Xignite Financials)

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