Insurance and technology company HCI Group (NYSE: HCI) will be reporting earnings this Wednesday after market close. Here’s what to expect.
HCI Group beat analysts’ revenue expectations last quarter, reporting revenues of $246.7 million, up 11.1% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ net premiums earned estimates but a miss of analysts’ book value per share estimates.
Is HCI Group 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 HCI Group’s revenue to grow 16.4% year on year, slowing from the 23.4% increase 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. HCI Group has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at HCI Group’s peers in the property & casualty insurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Markel Group delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 10%, and RLI reported revenues up 5.3%, topping estimates by 0.5%. Markel Group traded up 1.2% following the results while RLI was also up 2.5%.
Read our full analysis of Markel Group’s results here and RLI’s results here.
There has been positive sentiment among investors in the property & casualty insurance segment, with share prices up 7.5% on average over the last month. HCI Group is up 8.1% during the same time and is heading into earnings with an average analyst price target of $241.67 (compared to the current share price of $200.91).
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