Employers Holdings Earnings Preview

Employers Holdings (NYSE: EIG  ) 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 Feb. 27. Employers Holdings is a provider of workers' compensation insurance focused on select small businesses engaged in low- to medium-hazard industries.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Employers Holdings with three of five analysts rating it hold. Analysts like Employers Holdings better than competitor National Interstate overall. Zero out of six analysts rate National Interstate a buy compared to two of five for Employers Holdings. Analysts' rating of Employers Holdings has stayed constant from three months prior.
  • Revenue forecasts: On average, analysts predict $114.4 million in revenue this quarter. That would represent a rise of 1% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.12 per share. Estimates range from $0.05 to $0.18.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 100% granting it an "outperform" rating. The greater community backs the All-Stars, as 95.3% give it a rating of "outperform." Employers Holdings has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows net margins over the past four quarters.

Quarter

Q3

Q2

Q1

Q4

Net Margin

10.4%

7.5%

8.1%

17.8%

One final thing: If you want to keep tabs on Employers Holdings movements, and for more analysis on the company, make sure you add it to your Watchlist.

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.

Earnings estimates provided by Zacks.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1785720, ~/Articles/ArticleHandler.aspx, 4/23/2014 2:11:20 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement