The company is expected to report earnings of $0.56/share on revenue of $235 million. The consensus earnings per share (EPS) of $0.56/share is based on a poll of 5 analysts and represents a growth of 40.0% over the same quarter last year when the company reported earnings of $0.40/share.
The revenue forecast of $235 million based on a poll of 2 analysts implies a year-over-year (YoY) growth of 36.4%. Last year the company reported $172.3 million in revenue for the quarter.
|Metric||Expected||Prior Year||YoY Change|
Earnings Call Trends
Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.
What are your expectations from RLI for earnings this quarter? Let us know in the comments!
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.
After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 5.7%.
|Report Date||Price Day Prior||Price Next Day||Change %||Result|
Fundamentals And Technical Analysis
RLI is currently trading at $93.75/share, up 0.1% for the day. The company is trading at approximately 93.8% of its 52-week high of $99.93/share. The company’s stock price is down -2.6% since the last earnings report and up 4.3% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 63.46 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 35.7x and a forward P/E multiple of 36.5x. RLI’s current share price also implies a price-to-book (P/B) multiple of 4.2x. The following table summarizes some other key fundamental ratios:
|Last Fiscal Period||FY2019.Q3|
|Period End Date||September 30, 2019|
|Stock Price (Current)||$93.75|
|P/E Ratio (Fwd)||36.5x|
|Total Debt to Capital (%)||4.0%|
|Levered Free Cash Flow||$235.2 million|
|Enterprise Value / EBITDA||32.3x|
Company Profile: RLI Corp.
RLI Corp. is a mid-cap stock with a market capitalization of $4.198 billion and a total enterprise value of $4.309 billion. The company operates in the Financial sector and the Insurance industry.
RLI Corp., an insurance holding company, underwrites property and casualty insurance in the United States and internationally.
Its Casualty segment provides commercial and personal coverage products; and general liability products, such as coverage for third-party liability of commercial insureds, including manufacturers, contractors, apartments, and mercantile. This segment also offers coverages for security guards and in the areas of onshore energy-related businesses and environmental liability for underground storage tanks, contractors and asbestos, and environmental remediation specialists; and professional liability coverages focuses on providing errors and omission coverage to small to medium-sized design, technical, computer, and miscellaneous professionals.
The company’s Property segment offers commercial property, cargo, hull, protection and indemnity, marine liability, inland marine, homeowners’ and dwelling fire, and other property insurance products.
Its Surety segment offers small bonds for businesses and individuals; bonds for small to medium-sized contractors; commercial surety bonds for medium-to-large businesses; and commercial surety bonds for the energy, petrochemical, and refining industries. The company also underwrites various reinsurance coverages. The company markets its products through branch offices and independent agents.
RLI Corp. was founded in 1965 and is headquartered in Peoria, Illinois.