XL Capital Ltd. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component XL Capital Ltd. (NYSE:XL) will unveil its latest earnings on Tuesday, May 8, 2012. XL Group, through its subsidiaries, provides global insurance and reinsurance coverages to industrial, commercial and professional service firms and insurance companies.

XL Capital Ltd. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 40 cents per share, a swing from a loss of 52 cents in the year-earlier quarter. During the past three months, the average estimate has moved down from 50 cents. Between one and three months ago, the average estimate moved down. It has risen from 39 cents during the last month. Analysts are projecting profit to rise by 564.3% compared to last year’s $1.86.

Past Earnings Performance: The company is looking to top analyst estimates this quarter after trailing for the two previous quarters. Last quarter, it missed estimates by reporting net loss of 25 cents per share against an estimate of profit of 16 cents per share. The quarter before that, it missed expectations by 6 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.55 billion in revenue this quarter, a rise of 22% from the year-ago quarter. Analysts are forecasting total revenue of $6.26 billion for the year, a rise of 17.4% from last year’s revenue of $5.33 billion.

Analyst Ratings: Analysts are optimistic about this stock, with nine analysts rating it as a buy, none rating it as a sell and eight rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the fourth quarter of the last fiscal year, the company swung to a loss of $515.5 million ($1.65 a share) from a profit of $195.4 million (57 cents) a year earlier, missing analyst expectations. Revenue rose 8.8% to $1.73 billion from $1.59 billion.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 9.2% in the second quarter of the last fiscal year and 2.3% in the third quarter of the last fiscal year before climbing again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between March 6, 2012 and May 2, 2012, the stock price had risen $1.48 (7.4%), from $20.12 to $21.60. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 13, 2012, when shares rose for six straight days, increasing 8.2% (+$1.64) over that span. It saw one of its worst periods between May 31, 2011 and June 8, 2011 when shares fell for seven straight days, dropping 12.2% (-$2.83) over that span.

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

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