XL Group plc Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component XL Group plc (NYSE:XL) will unveil its latest earnings on Tuesday, August 2, 2011. XL Group plc, through its subsidiaries, provides global insurance and reinsurance coverages to industrial, commercial and professional service firms and insurance companies.

XL Group plc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 48 cents per share, a decline of 32.4% 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 65 cents. Between one and three months ago, the average estimate moved down and dropped from 53 cents during the last month. For the year, analysts are projecting net income of $1.04 per share, a decline of 56.7% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after topping forecasts the quarter prior. In the first quarter, it reported net loss of 52 cents per share against a mean estimate of 44 cents. Two quarters ago, it beat expectations by 7 cents with profit of 74 cents.

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Wall St. Revenue Expectations: On average, analysts predict $1.3 billion in revenue this quarter, a rise of 6.6% from the year ago quarter. Analysts are forecasting total revenue of $5.21 billion for the year, a rise of 3.6% from last year’s revenue of $5.03 billion.

Analyst Ratings: Analysts seem relatively indifferent about XL Group plc with nine of 17 analysts surveyed maintaining a hold rating.

Key Stats:

XL Group plc’s loss in the latest quarter follows profits in the previous three quarters. The company reported a loss of of $227.3 million in the first quarter, a profit of $195.4 million in the fourth quarter of the last fiscal year, a profit of $110 million in the third of the last fiscal year and a profit of $194 million in the second quarter of the last fiscal year.

A year-over-year revenue decrease in the first quarter snaps a streak of two consecutive quarters of revenue increases. Revenue fell 1.3% in the first quarter and rose 9.5% in the fourth quarter of the last fiscal year and 9% in the third quarter of the last fiscal year.

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), Aspen Insurance Hldgs. Ltd. (NYSE:AHL), and XL Group plc (XL3).

Stock Price Performance: During May 2, 2011 to July 27, 2011, the stock price had fallen $2.98 (-12.3%) from $24.21 to $21.23. 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 6.7% (+$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% (-$2.88) over that span. Shares are down 37 cents (-1.7%) year to date.

(Source: Xignite Financials)

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