Auto insurance provider Mercury General (NYSE:MCY) will be reporting results this Tuesday after market close. Here’s what you need to know.
Mercury General beat analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $1.39 billion, up 9.4% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates.
Is Mercury General a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Mercury General’s revenue to grow 10.5% year on year to $1.45 billion, slowing from the 21% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.30 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mercury General has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Mercury General’s peers in the property & casualty insurance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Stewart Information Services delivered year-on-year revenue growth of 20.1%, beating analysts’ expectations by 9.2%, and First American Financial reported revenues up 14.2%, topping estimates by 4.9%. Stewart Information Services traded up 10.3% following the results while First American Financial was also up 3.5%.
Read our full analysis of Stewart Information Services’s results here and First American Financial’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the property & casualty 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. Mercury General is up 3.4% during the same time and is heading into earnings with an average analyst price target of $80 (compared to the current share price of $69.65).
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