Reinsurance provider RenaissanceRe (NYSE: RNR) will be announcing earnings results this Tuesday after market hours. Here’s what to look for.
RenaissanceRe beat analysts’ revenue expectations last quarter, reporting revenues of $2.77 billion, down 13.7% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS estimates.
Is RenaissanceRe 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 RenaissanceRe’s revenue to decline 27.9% year on year, a further deceleration from the 19.5% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. RenaissanceRe has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at RenaissanceRe’s peers in the insurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. RLI delivered year-on-year revenue growth of 5.3%, beating analysts’ expectations by 0.5%, and Travelers reported flat revenue, topping estimates by 0.7%. RLI traded up 2.5% following the results while Travelers’s stock price was unchanged.
Read our full analysis of RLI’s results here and Travelers’s results here.
There has been positive sentiment among investors in the insurance segment, with share prices up 5.6% on average over the last month. RenaissanceRe is up 8.5% during the same time and is heading into earnings with an average analyst price target of $347.31 (compared to the current share price of $352.64).
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