XL Capital Ltd. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component XL Capital Ltd. (NYSE:XL) will unveil its latest earnings on Thursday, February 9, 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 18 cents per share, a decline of 75.7% 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 down. It also has dropped from 51 cents during the last month. Analysts are projecting profit to rise by 69.6% versus last year to 73 cents.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the third quarter, it reported profit of 28 cents per share against a mean estimate of 34 cents. Two quarters ago, it beat expectations by 27 cents with net income of 75 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.52 billion in revenue this quarter, a rise of 18.8% from the year ago quarter. Analysts are forecasting total revenue of $5.82 billion for the year, a rise of 15.7% from last year’s revenue of $5.03 billion.

Analyst Ratings: Analysts seem relatively indifferent about XL Capital with 10 of 18 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit fell 61.5% to $42.4 million (14 cents a share) from $110 million (23 cents a share) the year earlier, missing analyst expectations. Revenue rose 2.3% to $1.66 billion from $1.62 billion.

Key Stats:

The company’s revenue has risen for two straight quarters. In the second quarter, the figure rose 9.2%.

Stock Price Performance: During January 5, 2012 to February 3, 2012, the stock price had risen $1.22 (6.2%) from $19.80 to $21.02. The stock price saw one of its best stretches over the last year between October 17, 2011 and October 24, 2011 when shares rose for six-straight days, rising 19.9% (+$3.76) 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, falling 12.2% (-$2.84) over that span.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com