Infinity Property and Casualty Earnings Preview

Motley Fool Staff
Updated

If Infinity Property and Casualty (NAS: IPCC) misses estimates again it will be the third consecutive quarter for the company. The company will unveil its latest earnings on Friday. Infinity Property and Casualty is a holding company that has subsidiaries that provide personal automobile insurance with a concentration on nonstandard auto insurance.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Infinity Property and Casualty with four of five analysts rating it hold. While analysts still rate the stock a moderate sell, they are a little more optimistic about it compared to three months ago.

  • Revenue forecasts: On average, analysts predict $266.8 million in revenue this quarter. That would represent a rise of 7% from the year-ago quarter.

  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.62 per share. Estimates range from $0.61 to $0.64.

What our community says:
CAPS All-Stars are solidly behind the stock, with 100% giving it an outperform rating. The greater community backs the All-Stars, as 86% give it a rating of outperform. Fools are keen on Infinity Property and Casualty, though the message boards have been quiet lately with only 15 posts in the past 30 days. Infinity Property and Casualty's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Infinity Property and Casualty's income has fallen year-over-year by an average of 45% over the past five quarters. Revenue has now gone up for three straight quarters.

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. 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 Infinity Property and Casualty's reported margins for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Net Margin

2.3%

2.9%

4.4%

11.5%

One final thing: If you want to keep tabs on Infinity Property and Casualty movements, and for more analysis on the company, make sure you add it to your watchlist.

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Earnings estimates provided by Zacks.

At the time thisarticle was published

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