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Everest Group, Ltd. (EG), headquartered in Hamilton, Bermuda, is a global leader in reinsurance and insurance solutions, offering clients a comprehensive range of risk management products worldwide. With a market cap of 15.9 billion, Everest operates across diverse markets, providing innovative reinsurance and primary insurance offerings to meet the evolving needs of individuals and businesses. The company is set to release its Q4 earnings after the market closes on Monday, Feb. 3.
Ahead of the event, analysts expect EG to report a profit of $11.55 per share, down 54.1% from $25.18 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in three of the last four quarters while missing in one quarter.
Everest Group’s Q3 adjusted EPS of $14.62 exceeded the consensus estimates by 22.8%. The company’s Q3 earnings beat was driven by strong underwriting performance and disciplined risk management.
For fiscal 2024, analysts expect Everest Group to report an EPS of $59.39, down 10.5% from $66.39 in fiscal 2023. However, in fiscal 2025, EPS is expected to rebound, growing by 9.7% to $65.14.
Shares of Everest Group have declined 1.1% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 24.2% rise and the Financial Select Sector SPDR Fund’s (XLF) 27.6% return over the same period.
Everest Group has lagged behind the market, weighed down by missed revenue expectations, rising catastrophe losses, and higher expenses. Its Q3 earnings report, released on Oct. 30, offered a mixed outlook, leading to a 6.4% drop in share price during the next trading session.
Revenue grew 13% year-over-year to $4.3 billion but fell short of Wall Street's $4.5 billion forecast. The company posted a net operating income of $630 million, supported by improved attritional underwriting margins and strong net investment income. Operating cash flow remained solid at $1.7 billion, compared to $1.4 billion in fiscal Q3 2023.
The consensus opinion on EG stock is cautiously optimistic, with an overall “Moderate Buy” rating. Out of 14 analysts covering the stock, five advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, seven recommend a “Hold,” and one indicates a “Strong Sell.”
EG's average analyst price target is $422.23, indicating a potential upside of 14.6% from the current levels.
