Specialty insurance provider Pelagos Insurance (NYSE: PLGO) will be reporting results this Wednesday after the bell. Here’s what to look for.
Pelagos Insurance beat analysts’ revenue expectations last quarter, reporting revenues of $610.6 million, down 7.3% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ 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 8.6% year on year, in line with the 9.1% increase 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 Q2 results, giving us a hint as to what we can expect. Hamilton Insurance Group delivered year-on-year revenue growth of 13.3%, beating analysts’ expectations by 19.9%, and Reinsurance Group of America reported revenues up 20.2%, topping estimates by 2.9%. Hamilton Insurance Group traded up 1% following the results while Reinsurance Group of America was also up 4.2%.
Read our full analysis of Hamilton Insurance Group’s results here and Reinsurance Group of America’s results here.
Investors in the reinsurance segment have had steady hands going into earnings, with share prices flat over the last month. Pelagos Insurance is down 2.9% during the same time and is heading into earnings with an average analyst price target of $25.72 (compared to the current share price of $24.62).
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