Arch Capital Group Ltd. Second Quarter Earnings Sneak Peek

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Arch Capital Group Ltd. (NASDAQ:ACGL) will unveil its latest earnings on Wednesday, July 25, 2012. Arch Capital Group provides insurance and reinsurance on a worldwide basis through its wholly owned subsidiaries.

Arch Capital Group Ltd. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 82 cents per share, a rise of 82.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 78 cents. Between one and three months ago, the average estimate moved up. It has risen from 79 cents during the last month. Analysts are projecting profit to rise by 34.8% compared to last year’s $2.98.

Past Earnings Performance: Last quarter, the company beat estimates by 11 cents, coming in at net income of 82 cents a share versus the estimate of profit of 71 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the first quarter, profit rose more than sixfold to $164.3 million ($1.14 a share) from $25.8 million (14 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 5.2% to $815 million from $775.1 million.

Wall St. Revenue Expectations: On average, analysts predict $757.7 million in revenue this quarter, a rise of 7.2% from the year-ago quarter. Analysts are forecasting total revenue of $2.9 billion for the year, a rise of 8.6% from last year’s revenue of $2.67 billion.

Stock Price Performance: From June 20, 2012 to July 19, 2012, the stock price rose $1.46 (3.8%), from $38.10 to $39.56. The stock price saw one of its best stretches over the last year between January 30, 2012 and February 8, 2012, when shares rose for eight straight days, increasing 6.5% (+$2.31) over that span. It saw one of its worst periods between July 26, 2011 and August 8, 2011 when shares fell for 10 straight days, dropping 12.6% (-$4.34) over that span.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 0.1% in the second quarter of the last fiscal year, 4.1% in the third quarter of the last fiscal year and 9.4% in the fourth quarter of the last fiscal year before climbing in the first quarter.

Analyst Ratings: With eight analysts rating the stock as a buy, one rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

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

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