RLI Beats Estimates Yet Again
RLI (NYS: RLI) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), RLI beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and earnings per share contracted significantly.
Margins dropped across the board.
RLI tallied revenue of $164.0 million. The six analysts polled by S&P Capital IQ wanted to see revenue of $153.4 million. Sales were 8.1% higher than the prior-year quarter's $151.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.35. The nine earnings estimates compiled by S&P Capital IQ predicted $1.11 per share on the same basis. GAAP EPS of $1.43 for Q4 were 25% lower than the prior-year quarter's $1.90 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 35.4%, 830 basis points worse than the prior-year quarter. Operating margin was 26.5%, 790 basis points worse than the prior-year quarter. Net margin was 18.7%, 780 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $155.9 million. On the bottom line, the average EPS estimate is $1.10.
Next year's average estimate for revenue is $638.5 million. The average EPS estimate is $4.31.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 89 members out of 96 rating the stock outperform, and seven members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give RLI a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on RLI is hold, with an average price target of $66.86.
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At the time this article 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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