Specialty insurance provider Palomar Holdings (NASDAQ: PLMR) will be announcing earnings results this Wednesday after market close. Here’s what to expect.
Palomar Holdings beat analysts’ revenue expectations last quarter, reporting revenues of $314.4 million, up 54.7% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ net premiums earned estimates but a miss of analysts’ book value per share estimates.
Is Palomar Holdings 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 Palomar Holdings’s revenue to grow 45.8% year on year, slowing from the 64.8% increase 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 will stay the course heading into earnings. Palomar Holdings has a history of exceeding Wall Street’s expectations.
Looking at Palomar Holdings’s peers in the property & casualty insurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Markel Group delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 10%, and RLI reported revenues up 5.3%, topping estimates by 0.5%. Markel Group traded up 1.2% following the results while RLI was also up 2.5%.
Read our full analysis of Markel Group’s results here and RLI’s results here.
There has been positive sentiment among investors in the property & casualty insurance segment, with share prices up 7.5% on average over the last month. Palomar Holdings is up 14% during the same time and is heading into earnings with an average analyst price target of $159.17 (compared to the current share price of $145.12).
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