ACE Limited Earnings: Here’s Why Shares are Lower
ACE Limited (NYSE:ACE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. However, ACE Limited guided lower – an operating profit of between $6.60 and $7.00 per share for 2013, under the average analyst forecast of $7.89 per share. Shares are down 4.51%.
ACE Limited Earnings Cheat Sheet
Results: Net income increased 2% to $765 million ($1.43 per diluted share) in the quarter versus a net gain of $750 million in the year-earlier quarter.
Revenue: Decreased 18.29% to $3.66 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: ACE Limited reported adjusted net income of $1.43 per share. By that measure, the company beat the mean analyst estimate of $1.28. It beat the average revenue estimate of $3.27 billion.
Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had a good fourth quarter, which contributed to an excellent year. Even with the impact of Superstorm Sandy, we produced over $490 million of operating income and increased book value per share 2%. These results continue to demonstrate the strength of our underwriting culture and balance sheet, and the benefits of our globally diversified business…