Everest Re (NYSE:RE) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Everest Re Group, Ltd. (NYSE:RE) is scheduled to report Q3 earnings results after markets close for trading on October 29, 2020.

The company is expected to report earnings of $1.83/share on revenue of $2.216 billion. The consensus earnings per share (EPS) of $1.83/share is based on a poll of 9 analysts and represents a decline in eps of −45.9% over the same quarter last year, when the company reported earnings of $3.39/share.

The revenue forecast of $2.216 billion based on a poll of 2 analysts implies a year-over-year (YoY) growth in revenue of 7.1%. Last year the company reported $2.069 billion in revenue for the quarter.

Expected to report EPS contraction of −45.9% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $2,215.75 $2,068.60 7.1%
EPS $1.83 $3.39 −45.9%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from Everest Re Group, Ltd. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.65 $2.07 25.4% Beat
Q1, 2020 $3.63 $4.03 11.1% Beat
Q4, 2019 $2.58 $3.20 24.3% Beat
Q3, 2019 $2.22 $3.39 53.0% Beat
Q2, 2019 $6.47 $7.85 21.3% Beat
Q1, 2019 $5.90 $6.91 17.1% Beat
Q4, 2018 -$5.99 -$5.89 1.7% Beat
Q3, 2018 $2.97 $4.09 37.9% 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 3.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 5, 2020 $217.16 $223.66 3.0% Increase
May 6, 2020 $167.71 $173.83 3.6% Increase
February 10, 2020 $282.58 $291.64 3.2% Increase
October 28, 2019 $248.59 $256.24 3.1% Increase

Fundamentals And Technical Analysis

Everest Re Group, Ltd. is currently trading at $209.11/share, down −2.3% for the day. The company is trading at approximately 71.1% of its 52-week high of $294.31/share. The company’s stock price is down −6.5% since the last earnings report and up 4.6% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 56.10 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:RE Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 15.98 and a forward P/E multiple of 17.25.

Everest Re Group, Ltd.’s current share price also implies a price-to-book (P/B) multiple of 0.90. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $209.11
P/E Ratio 16.0x
P/E Ratio (Fwd) 17.2x
PEG Ratio 2.5
Total Debt / Total Capital 8.4%
Levered Free Cash Flow $2.103 billion
Price To Sales 1.0x

Finbox

Everest Re Group, Ltd. is a mid-cap stock with a market capitalization of $8.359 billion and a total enterprise value of $8.22 billion. The company operates in the Financials sector and the Insurance industry.

Everest Re Group, Ltd., through its subsidiaries, provides reinsurance and insurance products in the United States, Bermuda, and internationally. The company operates through four segments: U.S. Reinsurance, International, Bermuda, and Insurance. The U.S. Reinsurance segment writes property and casualty reinsurance; and specialty lines of business, including marine, aviation, surety, and accident and health insurance through reinsurance brokers, as well as directly with ceding companies in the United States. The International segment writes property and casualty reinsurance in Canada, Singapore, Brazil, Miami, and New Jersey. The Bermuda segment provides reinsurance and insurance to property and casualty markets through brokers and directly with ceding companies in Bermuda, and reinsurance to the United Kingdom and European markets. The Insurance segment writes property and casualty insurance products directly, as well as through general agents, wholesaler, retail brokers, and surplus lines brokers in the United States, Canada, Bermuda, and Ireland. The company also provides property and casualty reinsurance and insurance coverages, such as errors and omissions liability, directors’ and officers’ liability, medical malpractice, and worker’s compensation products. Everest Re Group, Ltd. was founded in 1973 and is headquartered in Hamilton, Bermuda.

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