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Arch Capital Group Ltd. (ACGL) is a Bermuda-based global financial services company that provides a broad range of insurance, reinsurance, and mortgage insurance products. Founded in 2001 and valued at a market cap of $34.9 billion, Arch has established a strong presence in the global insurance and reinsurance markets through its subsidiaries and affiliates.
The insurance powerhouse is all geared to announce its fiscal first-quarter earnings for 2025 after the market closes on Tuesday, Apr. 29. Ahead of the event, analysts expect ACGL to report a profit of $1.34 per share on a diluted basis, down 45.3% from $2.45 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the current year, analysts expect ACGL to report EPS of $7.81, down 15.8% from $9.28 in fiscal 2024. Its EPS is expected to rise 23.6% year over year to $9.65 in fiscal 2026.
ACGL shares have trailed broader benchmarks over the past 52 weeks, rising just 3% compared to the S&P 500 Index’s ($SPX) 6.6% gains. The underperformance is even more pronounced against the Financial Select Sector SPDR Fund (XLF), which saw an 18.6% return during the same period.
On February 10, Arch Capital delivered its fourth-quarter earnings, surpassing both topline and bottom-line expectations. Its net premiums written jumped 17.1% year-over-year. However, the stock slipped 2% in the following trading session as investors appeared cautious amid a 9.2% decline in net income and a 12.6% drop in underwriting income, largely driven by catastrophe-related losses.
Analysts’ consensus opinion on ACGL stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 17 analysts covering the stock, 10 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” four give a “Hold,” and one recommends a “Strong Sell.”
ACGL’s average analyst price target is $110.81, indicating a potential upside of 19.8% from the current levels.
On the date of publication, Kritika Sarmah 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.
