XL Group Goes Red

Seth Jayson, The Motley Fool
Updated

XL Group (NYS: XL) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), XL Group whiffed on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped to a loss.

Margins shrank across the board.

Revenue details
XL Group tallied revenue of $1.21 billion. The nine analysts polled by S&P Capital IQ looked for a top line of $1.40 billion on the same basis. GAAP reported sales were 7.7% higher than the prior-year quarter's $1.60 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at -$0.25. The 19 earnings estimates compiled by S&P Capital IQ forecast $0.16 per share on the same basis. GAAP EPS were -$1.62 for Q4 compared to $0.57 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 19.1%, 1,290 basis points worse than the prior-year quarter. Operating margin was 1.3%, 1,440 basis points worse than the prior-year quarter. Net margin was -29.8%, 4,200 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.83 billion. On the bottom line, the average EPS estimate is $0.48.

Next year's average estimate for revenue is $5.86 billion. The average EPS estimate is $2.18.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 289 members out of 508 rating the stock outperform, and 219 members rating it underperform. Among 152 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 94 give XL Group a green thumbs-up, and 58 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on XL Group is outperform, with an average price target of $25.00.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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