Earnings Preview: What To Expect From Travelers Companies' Report
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With a market cap of around $60 billion, The Travelers Companies, Inc. (TRV) provides commercial and personal property and casualty insurance through its Business Insurance, Bond & Specialty Insurance, and Personal Insurance segments in the U.S. and select international markets. Products include workers’ compensation, liability, auto, property, marine, aviation, energy, and homeowners’ insurance, distributed via brokers, agents, and program managers.
The New York-based company is expected to announce its fiscal Q1 2025 earnings results before the market opens on Wednesday, Apr. 16. Ahead of this event, analysts expect the insurance giant to report a profit of $0.62 per share, down 86.8% from $4.69 per share in the year-ago quarter. It has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. In Q4 2024, TRV exceeded the consensus EPS estimate by 39.3%.
For fiscal 2025, analysts expect TRV to report an EPS of $17.09, down 20.8% from $21.58 in fiscal 2024. However, EPS is anticipated to rebound and grow 33.4% year-over-year to $22.79 in fiscal 2026.
Shares of TRV have risen 14.9% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 3.6% gain and the Financial Select Sector SPDR Fund's (XLF) 14.5% return over the same period.
Shares of TRV rose 3.2% on Jan. 22 after the company reported Q4 2024 earnings that significantly beat Wall Street expectations, with core income reaching $9.15 per share. The strong performance was driven by robust underwriting results and a 23% increase in net investment income, which helped offset higher catastrophe losses. Travelers also reported a 7% rise in net written premiums to $10.7 billion for the quarter and a record $43.4 billion for the full year.
Analysts' consensus view on Travelers Companies’ stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 26 analysts covering the stock, nine recommend "Strong Buy," one "Moderate Buy," 12 suggest "Hold," one gives "Moderate Sell," and three advise "Strong Sell." This configuration is more bullish than three months ago, with seven analysts suggesting a "Strong Buy."
As of writing, TRV is trading below the average analyst price target of $272.41.
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.