Travelers Companies Earnings Preview: Analysts Expect Rising Revenue, Falling EPS

Travelers Companies (AMEX: TRV) announces its next round of earnings this Wednesday, October 19, 2011. Here's Benzinga's essential guide to Travelers Companies' third quarter earnings report.

Earnings and Revenue:

Wall Street expects an EPS of 99 cents/share and revenues of $5.58 billion. Travelers Companies' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $1.81/share on revenues of $5.46 billion. We'll have to wait for Wednesday to see if Travelers Companies reports a decline in EPS and a small boost in revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of Travelers Companies were trading at $50.45 as of October 13, 2011. Since January 1st, shares of Travelers Companies have declined 7.5%. For a full 12 months, the return has declined by 3%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for Travelers Companies is a Hold. The strength of this rating has declined slightly over the past three months.

Competitors:

Wondering how some of the other financials companies are doing? Here are a few of Travelers Companies' peers in that sector.

• American Financial Group (NYSE: AFG): Moderate Buy with a $0.78 recent quarter EPS
• Chubb (NYSE: CB): Hold with a $1.27 recent quarter EPS
• CNA (NYSE: CNA): Moderate Buy with a $0.43 recent quarter EPS
• HCC Insurance Holdings (NYSE: HCC): Hold with a $0.61 recent quarter EPS

Travelers Companies is in the insurance-property and casualty industry, which has experienced price/earnings growth of 2.2%.

Finally, a description of the company's main areas of operation: The Travelers Companies is a holding company that is engaged in providing commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals.

Take Action:

Now that you've gotten an advanced peak at Travelers Companies' upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

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