Progressive (PGR) To Report Q3 Earnings: Is A Beat In Store?
Zacks Investment Research | Oct 13, 2019 10:50PM ET
The Progressive Corporation (NYSE:PGR) is slated to report third-quarter 2019 results on Oct 16, before market open. The company delivered a positive surprise in the last two reported quarters of 2019.
Factors to Consider
Progressive’s third-quarter premiums are likely to have benefited from solid policies in force, higher retention, competitive rates and compelling product portfolio.
Premiums might have benefited from increase in business volumes.
Policies in force have been benefiting from focus on segmentation and risk selection. The Zacks Consensus Estimate for personal lines policies in force is pegged at 19,159 million, indicating an increase of 9.4% from the year-ago reported quarter.
Improved premiums, rise in investment income, increase in service revenues and fees as well as other revenues are likely to have fueled higher revenues. The Zacks Consensus Estimate for third-quarter revenues stands at $942 billion, suggesting 12.8% growth from the year-earlier quarter's reported figure.
Meanwhile, Progressive’s personal auto business is likely to have benefited from its focus on marketing and competitive product offerings as well as strong market presence. Progressive is one of the leading auto insurers in the United States, boasting one of the nation’s largest auto insurance groups. It is also the largest seller of motorcycle policies, the market leader in commercial auto insurance and one of the top 15 homeowners carriers based on premiums written.
Strong performing Vehicle and Property businesses are expected to have supported Personal and Commercial business lines.
Progressive is also likely to have witnessed new business application growth in its bundled auto and home customers (i.e., Robinsons) in both the Agency and Direct channels.
A not-so-active catastrophe environment and better pricing might have aided underwriting profit.
Expenses are likely to have risen on higher loss and loss-adjustment expenses, policy acquisition costs plus other underwriting expenses.
The Zacks Consensus Estimate for earnings is pegged at $1.33, indicating 15.6% decline from the year-ago quarter's reported number.
The Progressive Corporation Price and EPS Surprise
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