ACE Limited Earnings: Here’s Why the Stock is Down Now

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ACE Limited (NYSE:ACE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 2.46%.

ACE Limited Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.53% to $2.29 in the quarter versus EPS of $2.17 in the year-earlier quarter.

Revenue: Rose 11.84% to $4.39 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: ACE Limited reported adjusted EPS income of $2.29 per share. By that measure, the company beat the mean analyst estimate of $1.94. It beat the average revenue estimate of $3.81 billion.

Quoting Management: Evan G. Greenberg, Chairman and Chief Executive Officer of ACE Limited, commented: “ACE had record earnings in the quarter that were driven, in particular, by excellent current accident year underwriting results and strong investment income. We produced $790 million in after-tax operating income and our operating ROE was 12.3%. Book value declined 2.3% due to the rise in interest rates, which reduced unrealized gains in our investment portfolio. However, future investment income will benefit over time from the rise in interest rates.

Key Stats (on next page)…

Revenue increased 1.88% from $4.31 billion in the previous quarter. EPS increased 5.53% from $2.17 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $2.03 to a profit $2.04. For the current year, the average estimate has moved up from a profit of $8.05 to a profit of $8.07 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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