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Based in New York City, The Travelers Companies, Inc. (TRV) is a leading property and casualty insurance product and service provider operating across diverse markets in the United States and internationally. With a market cap of $46.64 billion, Travelers is renowned for its wide range of insurance solutions, including personal, business, and specialty insurance. The company is set to announce its fiscal Q2 earnings results before the market opens on Friday, Jul. 19.
Ahead of the event, analysts expect TRV to report a profit of $2.85 per share, a significant increase from $0.06 per share in the year-ago quarter. In the last four quarters, the company missed Wall Street’s bottom-line estimates in three and surpassed on another occasion.
Its adjusted earnings of $4.69 per share for the last reported quarter missed the consensus estimate by 1.3%. The company missed Q1 earnings estimates due to higher-than-expected catastrophe losses but reported a 14.1% year-over-year increase in core income, driven by higher underwriting gains and net investment income.
For fiscal 2024, analysts expect TRV to report EPS of $17.52, up 33.4% from $13.13 in fiscal 2023.
TRV stock is up 6.9% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 16.1% gains and the Invesco KBW Property & Casualty Insurance ETF’s (KBWP) 12.2% returns over the same time frame.
TRV shares fell over 1% on May 20 following a federal appeals court ruling that TRV’s insurance unit must cover Dexon Computer’s legal fees in a trademark dispute. Additionally, on Apr. 17, TRV shares dropped over 7% after the company reported Q1 results.
The consensus opinion on TRV stock is cautious, with an overall “Hold” rating. Out of 23 analysts covering the stock, seven advise a “Strong Buy” rating, 12 suggest a “Hold” rating, one recommends a “Moderate Sell,” and three suggest a “Strong Sell.” TRV's average analyst price target is $227.35, indicating a potential upside of 11.6% from the current levels.
On the date of publication, Rashmi Kumari 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.
