Hanover Insurance coverage Group (THG) got here out with quarterly earnings of $1.63 per share, beating the Zacks Consensus Estimate of $1.50 per share. This compares to earnings of $1.88 per share a 12 months in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 8.67%. 1 / 4 in the past, it was anticipated that this insurance coverage firm would publish earnings of $2.01 per share when it really produced earnings of $2.23, delivering a shock of 10.95%.
During the last 4 quarters, the corporate has surpassed consensus EPS estimates 4 occasions.
Hanover Insurance coverage, which belongs to the Zacks Insurance coverage – Property and Casualty trade, posted revenues of $1.16 billion for the quarter ended June 2020, lacking the Zacks Consensus Estimate by 3.16%. This compares to year-ago revenues of $1.19 billion. The corporate has topped consensus income estimates two occasions over the past 4 quarters.
The sustainability of the stock’s speedy price motion based mostly on the recently-released numbers and future earnings expectations will largely rely upon administration’s commentary on the earnings name.
Hanover Insurance coverage shares have misplaced about 28.1% for the reason that starting of the 12 months versus the S&P 500’s acquire of 0.3%.
What’s Subsequent for Hanover Insurance coverage?
Whereas Hanover Insurance coverage has underperformed the market up to now this 12 months, the query that involves traders’ minds is: what’s subsequent for the stock?
There aren’t any simple solutions to this key query, however one dependable measure that may assist traders tackle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified currently.
Empirical analysis exhibits a powerful correlation between near-term stock actions and tendencies in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a powerful monitor document of harnessing the ability of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions pattern for Hanover Insurance coverage was blended. Whereas the magnitude and course of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the stock. So, the shares are anticipated to carry out consistent with the market within the close to future. You may see the entire listing of at present’s Zacks #1 Rank (Robust Purchase) stocks right here.
Will probably be fascinating to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $2.10 on $1.24 billion in revenues for the approaching quarter and $7.94 on $4.90 billion in revenues for the present fiscal 12 months.
Buyers must be aware of the truth that the outlook for the trade can have a cloth impression on the efficiency of the stock as effectively. When it comes to the Zacks Trade Rank, Insurance coverage – Property and Casualty is at present within the backside 27% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.