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Valued at a market cap of $53.8 billion, The Travelers Companies, Inc. (TRV) provides a range of commercial and personal property, and casualty insurance products and services to businesses, government units, associations, and individuals. The New York-based company is expected to announce its fiscal Q3 earnings results before the market opens on Thursday, Oct. 17.
Ahead of this event, analysts project the insurance company to report a profit of $3.83 per share, an increase of 96.4% from $1.95 per share in the year-ago quarter. However, the company has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on two other occasions. In Q2, the company reported an EPS of $2.51, which topped the consensus estimates by 25.5%.
For fiscal 2024, analysts expect TRV to report an EPS of $17.18, up 30.9% from $13.13 in fiscal 2023. Moreover, EPS is expected to grow 17.4% year over year to $20.17 in fiscal 2025.
Shares of Travelers have gained 44.9% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 33.1% rise and the Financial Select Sector SPDR Fund’s (XLF) 37.2% return over the same period.
Despite beating earnings estimates, shares of TRV plunged 7.8% after its Q2 earnings release on Jul. 19, as its revenue of $11.3 billion in the period narrowly missed the consensus estimates. The company’s weaker-than-expected growth in net written premiums and $30 million rise in catastrophe losses due to extreme weather events further dampened investor confidence.
However, on Jul. 25, the company announced the launch of Quantum Boat 2.0, a user-friendly platform offering personalized coverage options for boat insurance, including new eligibility criteria and enhanced features for various boat types. This launch sparked investor enthusiasm, driving the stock higher over the next three consecutive trading sessions.
Analysts' consensus view on Travelers’ stock is cautious, with a "Hold" rating overall. Among 26 analysts covering the stock, eight recommend a "Strong Buy," 14 suggest "Hold," one recommends a “Moderate Sell,” and three indicate a “Strong Sell” rating. Yet, the present picture on Wall Street is slightly more bullish than three months ago when only seven analysts suggested a "Strong Buy." As of writing, TRV is trading premium to its mean price target of $228.59.
On the date of publication, Sohini Mondal 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.
