RenaissanceRe (NYSE:RNR) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

RenaissanceRe Holdings Ltd. (NYSE:RNR) is scheduled to report Q3 earnings results on October 27, 2020.

The company is expected to report earnings of -$1.72/share on revenue of $781.8 million. The consensus earnings per share (EPS) of -$1.72/share is based on a poll of 7 analysts and represents a decline in eps of −692.2% over the same quarter last year, when the company reported earnings of $0.29/share.

The revenue forecast of $781.8 million based on a poll of 2 analysts implies a year-over-year (YoY) growth in revenue of 11.0%. Last year the company reported $704.1 million in revenue for the quarter.

Expected to report EPS of -$1.72/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $781.82 $704.13 11.0%
EPS -$1.72 $0.29 −692.2%

Earnings Call Trends

Historically, management has exceeded analyst expectations 5 out of the last 8 tracked quarters, and missed expectations 3 quarters.

What are your expectations from RenaissanceRe Holdings Ltd. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $2.73 $4.06 48.9% Beat
Q1, 2020 $4.37 $0.76 −82.6% Missed
Q4, 2019 $0.67 $0.52 −22.8% Missed
Q3, 2019 $0.65 $0.29 −55.1% Missed
Q2, 2019 $3.67 $4.78 30.2% Beat
Q1, 2019 $3.18 $3.60 13.3% Beat
Q4, 2018 -$2.51 $0.02 100.8% Beat
Q3, 2018 $0.46 $0.52 13.2% Beat

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 June 30, 2020, the stock price reacted by increasing 2.3%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 28, 2020 $177.19 $181.23 2.3% Increase
May 6, 2020 $144.49 $149.64 3.6% Increase
February 4, 2020 $191.58 $194.05 1.3% Increase
October 29, 2019 $182.78 $185.42 1.4% Increase

Fundamentals And Technical Analysis

RenaissanceRe Holdings Ltd. is currently trading at $172.54/share, up 1.6% for the day. The company is trading at approximately 85.1% of its 52-week high of $202.68/share. The company’s stock price is down −4.8% since the last earnings report and down −1.2% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 46.78 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:RNR Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 15.86 and a forward P/E multiple of 32.22.

RenaissanceRe Holdings Ltd.’s current share price also implies a price-to-book (P/B) multiple of 1.30. The following table summarizes some other key fundamental ratios:

Data as of October 21, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $172.54
P/E Ratio 15.9x
P/E Ratio (Fwd) 32.2x
PEG Ratio −1.6
Total Debt / Total Capital 8.3%
Levered Free Cash Flow $2.21 billion
Price To Sales 1.9x

Finbox

RenaissanceRe Holdings Ltd. is a mid-cap stock with a market capitalization of $8.837 billion and a total enterprise value of $12.698 billion. The company operates in the Financials sector and the Insurance industry.

RenaissanceRe Holdings Ltd. provides reinsurance and insurance products in the United States and internationally. The company operates through Property, and Casualty and Specialty segments. The Property segment writes property catastrophe excess of loss reinsurance and excess of loss retrocessional reinsurance to insure insurance and reinsurance companies against natural and man-made catastrophes, including hurricanes, earthquakes, and other windstorms, as well as claims arising from other natural and man-made catastrophes comprising tsunamis, winter storms, freezes, floods, fires, tornadoes, explosions and acts of terrorism; and other property class of products, such as proportional reinsurance, property per risk, property reinsurance, and binding facilities and regional U.S. multi-line reinsurance. The Casualty and Specialty segment writes various classes of products, such as directors and officers, medical malpractice, and professional indemnity; automobile and employer’s liability, casualty clash, umbrella or excess casualty, workers’ compensation, and general liability; financial and mortgage guaranty, political risk, surety, and trade credit; and accident and health, agriculture, aviation, cyber, energy, marine, satellite, and terrorism. It distributes its products and services primarily through intermediaries. The company was founded in 1993 and is headquartered in Pembroke, Bermuda.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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