Specialty insurance provider Pelagos Insurance (NYSE: PLGO) will be announcing earnings results this Wednesday afternoon. Here’s what investors should know.
Pelagos Insurance beat analysts’ revenue expectations last quarter, reporting revenues of $650 million, up 10.3% year on year. It was a sluggish quarter for the company, with a significant miss of analysts’ EPS and net premiums earned estimates.
Is Pelagos Insurance a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Pelagos Insurance’s revenue to grow 8.8% year on year, a reversal from the 5% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Pelagos Insurance has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Pelagos Insurance’s peers in the reinsurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Hamilton Insurance Group delivered year-on-year revenue growth of 24%, beating analysts’ expectations by 20.3%, and Reinsurance Group of America reported revenues up 22.7%, topping estimates by 15.7%. Hamilton Insurance Group traded up 1.8% following the results while Reinsurance Group of America’s stock price was unchanged.
Read our full analysis of Hamilton Insurance Group’s results here and Reinsurance Group of America’s results here.
There has been positive sentiment among investors in the reinsurance segment, with share prices up 5.5% on average over the last month. Pelagos Insurance is up 14.9% during the same time and is heading into earnings with an average analyst price target of $25.17 (compared to the current share price of $28.30).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
