Insurance and reinsurance provider Arch Capital Group (NASDAQ:ACGL) will be reporting results this Tuesday after market close. Here’s what you need to know.
Arch Capital Group beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $4.67 billion, up 18.6% year on year. It was a strong quarter for the company, with a solid beat of analysts’ net premiums earned estimates and an impressive beat of analysts’ EPS estimates.
Is Arch Capital Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Arch Capital Group’s revenue to grow 10.1% year on year to $4.65 billion, slowing from the 33.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.30 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Arch Capital Group has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Arch Capital Group’s peers in the insurance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. RenaissanceRe delivered year-on-year revenue growth of 13.4%, beating analysts’ expectations by 8.7%, and Stewart Information Services reported revenues up 20.1%, topping estimates by 9.2%. RenaissanceRe’s stock price was unchanged after the resultswhile Stewart Information Services was up 10.3%.
Read our full analysis of RenaissanceRe’s results here and Stewart Information Services’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the insurance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.5% on average over the last month. Arch Capital Group is down 1.2% during the same time and is heading into earnings with an average analyst price target of $110.21 (compared to the current share price of $89.99).
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