Navigators Group Earnings Preview

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Investors braced for a bumpy ride ahead of Navigators Group's (NAS: NAVG) earnings announcement as the company has wavered between beating and falling short of analyst predictions during the past fiscal year. The company will unveil its latest earnings on Thursday, February 16. Navigators Group is an international insurance holding company focusing on specialty products within the overall property/casualty insurance market.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Navigators Group with seven of eight analysts rating it hold. Analysts like Navigators Group better than competitor Global Indemnity plc overall. Zero out of two analysts rate Global Indemnity plc a buy compared to one of eight for Navigators Group. Navigators Group's rating hasn't changed over the past three months.
  • Revenue Forecasts: On average, analysts predict $176.3 million in revenue this quarter. That would represent a decline of 14.3% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.69 per share. Estimates range from $0.60 to $0.74.

What our community says:
CAPS All-Stars are strongly supporting the stock, with 96.8% granting it an "outperform" rating. The community at large concurs with the All-Stars, with 96.9% giving it a rating of "outperform." Fools are impressed with Navigators Group, though the message boards have been quiet lately with only 32 posts in the past 30 days. Navigators Group has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Now let's get some insight into how efficient management is at running the business. Margins illustrate how efficiently a company captures portions of sales dollars. Navigators Group's net margins, which reflect what percentage of revenue becomes profit, have dropped year-over-year for the last three quarters. Here is how Navigators Group has been doing for the last four quarters: 

QuarterQ3Q2Q1Q4
Net Margin7.3%4.9%-4.7%8.4%

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Earnings estimates provided by Zacks.

At the time this article was published

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