Financial guaranty insurer Assured Guaranty (NYSE: AGO) will be reporting results this Thursday afternoon. Here’s what to expect.
Assured Guaranty beat analysts’ revenue expectations last quarter, reporting revenues of $207 million, down 23% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Is Assured Guaranty 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 Assured Guaranty’s revenue to grow 27.2% year on year, a reversal from the 52.3% decrease 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 to stay the course heading into earnings. Assured Guaranty rarely misses Wall Street’s revenue estimates.
Looking at Assured Guaranty’s peers in the property & casualty insurance segment, some have already reported their Q4 results, giving us a hint as to what we can expect. First American Financial delivered year-on-year revenue growth of 21.6%, beating analysts’ expectations by 15.2%, and Skyward Specialty Insurance reported revenues up 26.7%, topping estimates by 1.3%. First American Financial traded up 2.8% following the results while Skyward Specialty Insurance was down 4.5%.
Read our full analysis of First American Financial’s results here and Skyward Specialty Insurance’s results here.
Investors in the property & casualty insurance segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. Assured Guaranty is up 2% during the same time and is heading into earnings with an average analyst price target of $107 (compared to the current share price of $85.55).
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