Chubb's Quarterly Earnings Preview: What You Need to…

Chubb's Quarterly Earnings Preview: What You Need to Know

Valued at a market cap of $117.2 billion, Chubb Limited (CB) operates in the property and casualty insurance sector. Based in Zurich, Switzerland, it offers a wide range of commercial and personal insurance products, reinsurance, and life insurance globally. The company is expected to announce its Q3 earnings after the market closes on Tuesday, Oct. 29.

Ahead of the event, analysts expect the insurance giant to report a profit of $4.96 per share, marginally up from $4.95 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in the past four quarters. CB reported an EPS of $5.38 in the most recent quarter, exceeding the consensus estimate by 6.8%.

In fiscal 2024, analysts expect Chubb to report an EPS of $21.29, down 5.6% from $22.54 in fiscal 2023. However, in fiscal 2025, its EPS is expected to grow nearly 8% year-over-year to $22.99.

CB stock is up 27.5% on a YTD basis, outperforming the S&P 500 Index’s ($SPX) 22.9% gains and the Financial Select Sector SPDR Fund's (XLF) 25.2% increase over the same period.

Chubb reported strong Q2 results on Jul. 23, driven by an 11.8% increase in net premiums written, indicating strong demand for its insurance products. The company also reported a 28.2% rise in pre-tax net investment income, benefiting from high interest rates and an equities rally. The company also exceeded earnings expectations with a net income growth of 24.3% to $2.2 billion. However, the stock fell 1.2% the following day due to concerns over rising catastrophe-related claims, increased underwriting costs, and uncertainties about sustaining premium growth.

The consensus opinion on Chubb stock is cautiously optimistic, with a “Moderate Buy” rating overall. Out of 24 analysts covering the stock, opinions include 11 "Strong Buys," two "Moderate Buys," nine "Holds," one "Moderate Sell," and one "Strong Sell." This consensus is more bullish than three months ago, with nine “Strong Buy” ratings on the stock.

The average analyst price target for CB is $292.65, suggesting a potential upside of only 1.4% from current levels.

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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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