Erie Indemnity Company (ERIE), headquartered in Erie, Pennsylvania, operates as a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange. Valued at $27.3 billion by market cap, the company is also involved in the property and casualty insurance business through its management of Flagship City Insurance Company. It sells auto, home, life, and business insurance. The insurance company is expected to announce its fiscal third-quarter earnings for 2024 after the market closes on Thursday, Oct. 31.
Ahead of the event, analysts expect ERIE to report a profit of $2.99 per share on a diluted basis, up 19.1% from $2.51 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect ERIE to report EPS of $11.41, up 33.8% from $8.53 in fiscal 2023. Its EPS is expected to rise 25.3% year over year to $14.30 in fiscal 2025.
ERIE stock has outperformed the S&P 500’s ($SPX) 33.5% gains over the past 52 weeks, with shares up 74.9% during this period. Similarly, it outperformed the Financial Select Sector SPDR Fund’s (XLF) 37.3% gains over the same time frame.
Erie Indemnity's strong performance can be attributed to its strategic focus, that has helped the company navigate market fluctuations and build a loyal customer base. Additionally, the company's improved combined ratio indicates increased profitability, and its pricing strategy provides flexibility to offer competitive rates while maintaining profitability.
On Jul. 25, ERIE shares closed up more than 1% after reporting its Q2 results. Its EPS came in at $3.13, up 39.1% year over year. The company’s revenue increased 17.9% year over year to $990.4 million.
Analysts’ consensus opinion on ERIE stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of two analysts covering the stock, one advises a “Strong Buy” rating, and one gives a “Hold.”
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
