Financial guaranty insurer Assured Guaranty (NYSE:AGO) will be reporting results this Thursday after market hours. Here’s what to look for.
Assured Guaranty beat analysts’ revenue expectations last quarter, reporting revenues of $277 million, up 77.6% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ net premiums earned estimates.
Is Assured Guaranty 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 Assured Guaranty’s revenue to decline 42.1% year on year, a reversal from the 40.8% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Assured Guaranty rarely misses Wall Street’s revenue estimates.
Looking at Assured Guaranty’s peers in the property & casualty insurance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Stewart Information Services delivered year-on-year revenue growth of 27.7%, beating analysts’ expectations by 4.7%, and Mercury General reported revenues up 10.5%, topping estimates by 5.4%. Stewart Information Services traded up 3.9% following the results.
Read our full analysis of Stewart Information Services’s results here and Mercury General’s results here.
There has been positive sentiment among investors in the property & casualty insurance segment, with share prices up 2.8% on average over the last month. Assured Guaranty’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $102.33 (compared to the current share price of $81.89).
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