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Market Overview

Hanover Insurance Gr's Earnings Outlook

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Hanover Insurance Gr (NYSE:THG) will be releasing its next round of earnings this Wednesday, February 03. For all of the relevant information, here is your guide for Wednesday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on Hanover Insurance Gr management projections, analysts predict EPS of $2.33 on revenue of $1.12 billion. Hanover Insurance Gr earnings in the same period a year ago was $2.01 per share. Quarterly sales came in at $1.10 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Wednesday, EPS would be up 15.92%. Revenue would be have grown 1.54% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 2.11 1.42 2.03 1.94
EPS Actual 2.46 1.63 2.23 2.01
Revenue Estimate 1.26 B 1.13 B 1.15 B 1.11 B
Revenue Actual 1.27 B 1.08 B 1.14 B 1.10 B

Stock Performance

Shares of Hanover Insurance Gr were trading at $113.4 as of February 01. Over the last 52-week period, shares are down 18.44%. Given that these returns are generally negative, long-term shareholders are probably down going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Hanover Insurance Gr is scheduled to hold the call at 10:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings