Earnings Preview: What to Expect From Chubb's Report
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Zurich, Switzerland-based Chubb Limited (CB) is an insurance and reinsurance company that provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance, and life insurance to a diverse group of clients. Valued at a market cap of $103.9 billion, it is expected to announce its fiscal Q4 earnings results after the market closes on Tuesday, Jan. 28.
Prior to this event, analysts project the insurance company to report a profit of $5.48 per share, down 34% from $8.30 per share in the year-ago quarter. The company has a solid track record of consistently beating Wall Street's bottom-line estimates in the last four quarters. In Q3, CB’s adjusted EPS of $5.72 outpaced the Wall Street estimates by a notable margin of 16%.
For fiscal 2024, analysts expect Chubb to report an EPS of $21.93, down 2.7% from $22.54 in fiscal 2023. Nonetheless, in fiscal 2025, EPS is expected to grow 5.5% year-over-year to $23.14.
Shares of CB have gained 14.4% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 21.8% rise and the Financial Select Sector SPDR Fund’s (XLF) 25.2% return over the same time frame.
Chubb’s shares plunged 1.2% after its Q3 earnings release on Oct. 29 as its revenues of $15 billion, which grew 6.5% from the year-ago quarter, could not meet the Wall Street estimates of $15.2 billion. Higher catastrophe losses in the quarter somewhat affected CB’s otherwise strong performance in North America P&C, Overseas General, and Life Insurance divisions. On the brighter side, its adjusted earnings of $5.72 per share outpaced the Wall Street estimates of $4.93 and improved by 15.6% year-over-year. Solid underwriting income and improved investment income also aided the results.
Wall Street analysts are moderately optimistic about CB’s stock, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, 11 recommend a "Strong Buy," two indicate “Moderate Buy,” nine suggest “Hold,” one indicates a “Moderate Sell,” and one suggests a “Strong Sell” rating.
The average price target for Chubb is $301.96, which indicates a 17.2% potential upside from the current levels.
On the date of publication, Neharika Jain 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.