Arch Capital Group Ltd. Earnings: Beats Wall Street

Arch Capital Group Ltd. (NASDAQ:ACGL) posted lower net income in the fourth quarter compared with a year-earlier period. Arch Capital Group provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries.

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Arch Capital Group Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the property and casualty insurance company fell to $143.3 million ($1 per share) vs. $234.1 million ($1.51 per share) a year earlier. This is a decline of 38.8% from the year earlier quarter.

Revenue: Fell 9.4% to $747.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Arch Capital Group Ltd. beat the mean analyst estimate of 65 cents per share. It beat the average revenue estimate of $528.2 million.

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 15 cents in the third quarter, by 25 cents in the second quarter, and by 33 cents in the first quarter.

Revenue has fallen in the past four quarters. Revenue declined 4.1% to $765 million in the third quarter. The figure fell 0.1% in the second quarter from the year earlier and dropped 8.3% in the first quarter from the year-ago quarter.

Net income has dropped 38.4% year over year on average across the last five quarters. Performance was hurt by an 88.1% decline in the first quarter from the year earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 78 cents a share to 80 cents over the last ninety days. Over the past sixty days, the average estimate for the fiscal year has reached $1.92 abs per share, a decline from $2.09.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com