The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Travelers met expectations on revenues and missed slightly on earnings per share.
Compared to the prior-year quarter, revenue grew and earnings per share dropped significantly.
Margins contracted across the board.
Travelers logged revenue of $5.6 billion. The 10 analysts polled by S&P Capital IQ expected revenue of $5.6 billion. Sales were 0.3% lower than the prior-year quarter's $5.4 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.48. The 22 earnings estimates compiled by S&P Capital IQ predicted $1.50 per share on the same basis. GAAP EPS of $1.57 for Q4 were 19% lower than the prior-year quarter's $1.95 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 27.9%, 720 basis points worse than the prior-year quarter. Operating margin was 13.7%, 750 basis points worse than the prior-year quarter. Net margin was 9.7%, 430 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.7 billion. On the bottom line, the average EPS estimate is $1.50.
Next year's average estimate for revenue is $23 billion. The average EPS estimate is $5.73.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 400 members out of 436 rating the stock outperform, and 36 members rating it underperform. Among 137 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 129 give Travelers a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Travelers is outperform, with an average price target of $61.22.
Can your retirement portfolio provide you with enough income to last? You'll need more than Travelers. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.
- Add Travelers Companies to My Watchlist.
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 of Motley 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.