W.R. Berkley Corp Third Quarter Earnings Sneak Peek

W.R. Berkley Corporation (NYSE:WRB) will unveil its latest earnings on Monday, October 22, 2012. 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 profit of 56 cents per share, a rise of 27.3% 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 57 cents. Between one and three months ago, the average estimate moved up. It has dropped from 58 cents during the last month. Analysts are projecting profit to rise by 20.9% versus last year to $2.60.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 3 cents, reporting net income of 65 cents per share against a mean estimate of profit of 62 cents per share.

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A Look Back: In the second quarter, profit rose 31% to $108.8 million (76 cents a share) from $83.1 million (56 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 11.4% to $1.42 billion from $1.27 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 9.4% in revenue from the year-earlier quarter to $1.4 billion.

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

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 8.8% in the third quarter of the last fiscal year, 11.3% in the fourth quarter of the last fiscal year and 11.7% in the first quarter before increasing again in the second quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 5.7% for the last four quarters.

Stock Price Performance: Between October 10, 2012 and October 16, 2012, the stock price rose 58 cents (1.5%), from $37.57 to $38.15. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 3, 2012, when shares rose for seven straight days, increasing 6.6% (+$2.46) over that span. It saw one of its worst periods between September 14, 2012 and September 20, 2012 when shares fell for five straight days, dropping 2.4% (-93 cents) over that span.

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

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