Progressive (PGR) got here out with quarterly earnings of
Progressive (PGR) got here out with quarterly earnings of $1.87 per share, beating the Zacks Consensus Estimate of $1.69 per share. This compares to earnings of $1.42 per share a yr in the past. These figures are adjusted for non-recurring gadgets.
This quarterly report represents an earnings shock of 10.65%. 1 / 4 in the past, it was anticipated that this insurer would put up earnings of $1.72 per share when it really produced earnings of $1.83, delivering a shock of 6.40%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates 4 occasions.
Progressive, which belongs to the Zacks Insurance coverage – Property and Casualty business, posted revenues of $10.41 billion for the quarter ended September 2020, lacking the Zacks Consensus Estimate by 1.24%. This compares to year-ago revenues of $9.47 billion. The corporate has topped consensus income estimates two occasions over the past 4 quarters.
The sustainability of the inventory’s quick worth motion based mostly on the recently-released numbers and future earnings expectations will principally rely upon administration’s commentary on the earnings name.
Progressive shares have added about 38.5% for the reason that starting of the yr versus the S&P 500’s acquire of 8.7%.
What’s Subsequent for Progressive?
Whereas Progressive has outperformed the market to this point this yr, the query that involves buyers’ minds is: what’s subsequent for the inventory?
There are not any straightforward solutions to this key query, however one dependable measure that may assist buyers handle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified these days.
Empirical analysis reveals a powerful correlation between near-term inventory actions and developments in earnings estimate revisions. Traders can observe such revisions by themselves or depend on a tried-and-tested ranking software just like the Zacks Rank, which has a formidable observe file of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Progressive was combined. Whereas the magnitude and route of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out consistent with the market within the close to future. You possibly can see the entire checklist of at the moment’s Zacks #1 Rank (Sturdy Purchase) shares right here.
It will likely be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $1.41 on $11.38 billion in revenues for the approaching quarter and $6.90 on $41.77 billion in revenues for the present fiscal yr.
Traders needs to be aware of the truth that the outlook for the business can have a cloth affect on the efficiency of the inventory as effectively. By way of the Zacks Business Rank, Insurance coverage – Property and Casualty is at present within the backside 10% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.