Tower Group Inc Third Quarter Earnings Sneak Peek

Tower Group Inc (NASDAQ:TWGP) will unveil its latest earnings on Wednesday, November 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 analyst estimate is for net income of 61 cents per share, a spike from net loss of 38 cents in the year-ago quarter. During the past three months, the average estimate has moved down from 63 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 62 cents during the last month. Analysts are projecting profit to rise by 4.4% versus last year to $1.43.

Last quarter, the company came in at a loss of 39 cents per share against a mean estimate of net loss of 41 cents per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by 2 cents.

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A Look Back: In the second quarter, the company swung to a loss of $15.1 million (39 cents a share) from a profit of $24.1 million (58 cents) a year earlier, but beat analyst expectations. Revenue rose 16% to $506.1 million from $436.3 million.

Stock Price Performance: Between October 4, 2012 and November 1, 2012, the stock price dropped $1.52 (-7.9%), from $19.27 to $17.75. 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 7.7% (+$1.67) over that span. It saw one of its worst periods between August 17, 2012 and August 27, 2012 when shares fell for seven straight days, dropping 3.8% (-71 cents) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 2.5% in revenue from the year-earlier quarter to $403.1 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 7.5% in the third quarter of the last fiscal year, 8.4% in the fourth quarter of the last fiscal year and 8.4% in the first quarter before increasing again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with four of five analysts surveyed giving that rating.

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

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