Here's What to Expect From Progressive's Next Earnings Report?

Barchart · 07/01 10:08

The Progressive Corporation (PGR), with a market cap of $121.7 billion, operates in the insurance industry, offering a diverse range of personal and commercial auto, residential property, and specialty insurance products. The company is expected to announce its fiscal Q2 earnings results on Thursday, July 11.

Ahead of the event, analysts are expecting PGR to report a profit of $2.04 per share, up 308% from $0.50 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. Better-than-expected strong demand for its personal and property insurance policies helped the company surpass the consensus EPS estimate by 16.6% in the most recent quarter.

For fiscal 2024, analysts expect Progressive to report EPS of $11.27, up 84.5% from $6.11 in fiscal 2023.

PGR has significantly outperformed the broader markets over the past 52 weeks, with shares up 57.7% during this period versus the S&P 500 Index's ($SPX) 24.8% gain and the S&P Insurance ETF SPDR's (KIE) 24.5% return over the same time frame.

Progressive's recent price surge is driven by exceptional financial performance, notably in its Q1 earnings results revealed in April. The robust demand for personal and property insurance, bolstered by a strong job market and rising wages, has significantly boosted investor confidence. In addition, on June 14, PGR disclosed its financial results for the month of May, highlighting consistent growth in premiums and policies, alongside a marginal increase in its combined ratio compared to the previous year. Fueled by this positive outcome, the stock popped nearly 2.1% in the subsequent trading session. 

Analysts' consensus rating on Progressive stock is cautiously optimistic overall, with a "Moderate Buy" rating. Among 19 analysts covering the stock, 11 recommend a "Strong Buy," while the remaining eight suggest a "Hold" rating, a consensus that has remained steady over the past three months. 

The average analyst price target for PGR is $233.88, suggesting a potential upside of 12.6% from the 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.