XL Capital Ltd. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component XL Capital Ltd. (NYSE:XL) will unveil its latest earnings on Tuesday, November 1, 2011. 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 profit of 34 cents per share, a decline of 34.6% 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 43 cents. Between one and three months ago, the average estimate moved up. It has dropped from 44 cents during the last month. Analysts are projecting profit to rise by 48.8% versus last year to $1.23.

Last quarter, the company came in at net income of 75 cents per share against a mean estimate of profit of 48 cents per share, beating estimates after missing them in the previous quarter. In the first quarter, it missed forecasts by 8 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.34 billion in revenue this quarter, a rise of 5.5% from the year ago quarter. Analysts are forecasting total revenue of $5.31 billion for the year, a rise of 5.6% from last year’s revenue of $5.03 billion.

Analyst Ratings: Analysts are bullish on XL Capital as eight analysts rate it as a buy, none rate it as a sell and eight rate it as a hold.

A Look Back: In the second quarter, profit rose 16.3% to $225.7 million (69 cents a share) from $194 million (56 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 9.2% to $1.7 billion from $1.55 billion.

Key Stats:

Revenue rose in the second quarter after seeing a drop the quarter before. In the first quarter, revenue fell 1.3%.

Competitors to Watch: Arch Capital Group Ltd. (NASDAQ:ACGL), The Travelers Companies, Inc. (NYSE:TRV), PartnerRe Ltd. (NYSE:PRE), Zurich Financial Services (ZFSVY), Axis Capital Holdings Ltd. (NYSE:AXS), Montpelier Re Hldgs. Ltd. (NYSE:MRH), RenaissanceRe Hldgs. Ltd. (NYSE:RNR) and Aspen Insurance Hldgs. Ltd. (NYSE:AHL).

Stock Price Performance: During September 28, 2011 to October 26, 2011, the stock price had risen $3.10 (16.5%) from $18.84 to $21.94. The stock price saw one of its best stretches over the last year between January 7, 2011 and January 18, 2011 when shares rose for seven-straight days, rising 6.8% (+$1.47) 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% (-$2.86) over that span. Shares are up 46 cents (+2.1%) year to date.

(Source: Xignite Financials)

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