W.R. Berkley Corp Fourth Quarter Earnings Sneak Peek

W.R. Berkley Corporation (NYSE:WRB) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. W.R. Berkley is an insurance holding company in the United States, which operates in five business segments: specialty insurance, regional property casualty insurance, alternative markets, reinsurance and international.

W.R. Berkley Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 50 cents per share, a decline of 13.8% 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 67 cents. Between one and three months ago, the average estimate moved down. It has risen from 49 cents during the last month. Analysts are projecting profit to rise by 15.3% versus last year to $2.48.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting profit of 61 cents per share against a mean estimate of net income of 54 cents per share.

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A Look Back: In the third quarter, profit rose 30.6% to $100.9 million (71 cents a share) from $77.3 million (53 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 11% to $1.42 billion from $1.28 billion.

Here’s how W.R. Berkley Corp traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

wrb

Wall St. Revenue Expectations: On average, analysts predict $1.48 billion in revenue this quarter, a rise of 8% from the year-ago quarter. Analysts are forecasting total revenue of $5.6 billion for the year, a rise of 8.5% from last year’s revenue of $5.16 billion.

Stock Price Performance: From December 21, 2012 to January 23, 2013, the stock price rose $2.67 (6.9%), from $38.66 to $41.33. The stock price saw one of its best stretches over the last year between January 7, 2013 and January 15, 2013, when shares rose for seven straight days, increasing 1.7% (+68 cents) over that span. It saw one of its worst periods between December 5, 2012 and December 14, 2012 when shares fell for eight straight days, dropping 3.3% (-$1.32) over that span.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 11.4% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 16.2% in the first quarter and 31% in the second quarter before increasing again in the third quarter.

Analyst Ratings: There are mostly holds on the stock with eight of 11 analysts surveyed giving that rating.

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