Tower Group Inc. First Quarter Earnings Sneak Peek

Tower Group, Inc. (NASDAQ:TWGP) will unveil its latest earnings on Monday, May 7, 2012. Tower Group, through its subsidiaries, offers property and casualty insurance products and insurance services and products.

Tower Group, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 58 cents per share, a rise of 18.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 56 cents. Between one and three months ago, the average estimate moved up. It has dropped from 62 cents during the last month. For the year, analysts are projecting net income of $2.60 per share, a rise of 89.8% from last year.

Last quarter, the company came in at profit of 63 cents per share against a mean estimate of net income of 62 cents per share, beating estimates after missing them in the previous quarter. In the third quarter of the last fiscal year, it missed forecasts by 21 cents.

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Wall St. Revenue Expectations: Analysts predict a rise of 13.7% in revenue from the year-earlier quarter to $431.8 million.

Analyst Ratings: Analysts seem relatively indifferent about Tower Group with three of five analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 30.3% to $26.8 million (66 cents a share) from $38.5 million (91 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 8.4% to $454.9 million from $419.8 million.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 41.9% in the first quarter of the last fiscal year, 39.9% in the second quarter of the last fiscal year and 7.5% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between April 2, 2012 and May 1, 2012, the stock price dropped 96 cents (-4.2%), from $22.73 to $21.77. It saw one of its worst periods between November 15, 2011 and November 23, 2011 when shares fell for seven straight days, dropping 9.9% (-$2.15) over that span. The stock price saw one of its best stretches over the last year between January 31, 2012 and February 8, 2012, when shares rose for seven straight days, increasing 7.8% (+$1.66) over that span.

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

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