Meadowbrook Insurance Group Earnings Preview

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Meadowbrook Insurance Group (NYS: MIG) hasn't been able to establish an earnings trend, bouncing between beating and falling short of estimates during the past fiscal year. The company will unveil its latest earnings Tuesday. Meadowbrook Insurance Group offers a full range of insurance products and services, focusing on niche and specialty program business that is underserved by the standard insurance market.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Meadowbrook Insurance Group with three of five analysts rating it hold. Analysts like Meadowbrook Insurance Group better than competitor National Interstate overall. Zero out of six analysts rate National Interstate a buy compared with two of five for Meadowbrook Insurance Group.
  • Revenue Forecasts: On average, analysts predict $211.9 million in revenue this quarter. That would represent a rise of 7.9% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.17 per share. Estimates range from $0.15 to $0.23.

What our community says:
CAPS All-Stars are strongly supporting the stock, with 100% giving it an "outperform" rating. The greater community backs the All Stars, as 95.9% give it a rating of "outperform." Fools are keen on Meadowbrook Insurance Group, though the message boards have been quiet lately with only 42 posts in the past 30 days. Meadowbrook Insurance Group has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Meadowbrook Insurance Group's income has fallen year-over-year by an average of 18.1% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Margins are a representation of how efficiently a company captures portions of sales dollars. The company's net margins have been decreasing year-over-year for the last four quarters. Net margins reflect what percentage of revenue becomes profit. Here are Meadowbrook Insurance Group's reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Net Margin

4.5%

4.9%

7.8%

7.8%

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Earnings estimates provided by Zacks.

At the time this article was published

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