/Arch%20Capital%20Group%20Ltd%20logo%20on%20phone-%20by%20viewimage%20via%20Shutterstock.jpg)
Arch Capital Group Ltd. (ACGL), headquartered in Pembroke, Bermuda, provides financial services. With a market cap of $35.9 billion, the company offers life, health, and property insurance and reinsurance products, as well as mortgage insurance products. The insurance giant is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Monday, Feb. 10.
Ahead of the event, analysts expect ACGL to report a profit of $1.85 per share on a diluted basis, down 25.7% from $2.49 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 full year, analysts expect ACGL to report EPS of $8.86, up 4.9% from $8.45 in fiscal 2023. Its EPS is expected to rise 1.8% year over year to $9.02 in fiscal 2025.
ACGL stock has underperformed the S&P 500’s ($SPX) 26.5% gains over the past 52 weeks, with shares up 21.4% during this period. Similarly, it underperformed the Financial Select Sector SPDR Fund’s (XLF) 34.8% gains over the same time frame.
ACGL's underperformance can be attributed to decreased underwriting income in all segments, largely due to higher catastrophic losses caused by Hurricane Helene, which led to a lack of confidence among investors.
On Oct. 30, ACGL reported its Q3 results, and its shares closed down more than 6% in the following trading session. Its adjusted EPS of $1.99 beat Wall Street expectations of $1.94. The company’s revenue stood at $4.7 billion, up 41.8% year over year.
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 $117.31, indicating a potential upside of 22.8% from the current levels.
