Core Insights - Erie Indemnity Company reported a net income of $159.8 million, or $3.06 per diluted share, for the third quarter of 2024, an increase from $131.0 million, or $2.51 per diluted share, in the same quarter of 2023 [2] - For the first nine months of 2024, net income was $448.3 million, or $8.57 per diluted share, compared to $335.1 million, or $6.41 per diluted share, in the first nine months of 2023 [2] Financial Performance - Operating income before taxes increased by $31.7 million, or 21.3 percent, in the third quarter of 2024 compared to the third quarter of 2023 [3] - For the first nine months of 2024, operating income before taxes rose by $116.0 million, or 29.5 percent, compared to the same period in 2023 [6] Revenue Breakdown - Management fee revenue from policy issuance and renewal services increased by $120.1 million, or 18.5 percent, in the third quarter of 2024 compared to the third quarter of 2023 [4] - For the first nine months of 2024, management fee revenue from policy issuance and renewal services rose by $355.3 million, or 19.3 percent, compared to the same period in 2023 [7] - Administrative services revenue increased by $1.0 million, or 6.2 percent, in the third quarter of 2024 compared to the third quarter of 2023 [4] - Administrative services revenue for the first nine months of 2024 increased by $4.2 million, or 8.9 percent, compared to the same period in 2023 [7] Expense Analysis - Commissions related to policy issuance and renewal services increased by $66.3 million in the third quarter of 2024 compared to the third quarter of 2023, driven by growth in written premium [4] - Non-commission expenses rose by $23.3 million in the third quarter of 2024 compared to the same quarter in 2023, with notable increases in underwriting and policy processing expenses [4] - For the first nine months of 2024, non-commission expenses increased by $41.7 million compared to the same period in 2023 [7][8] Investment Income - Income from investments before taxes totaled $19.5 million in the third quarter of 2024, up from $12.3 million in the same quarter of 2023 [5] - Net investment income was $17.3 million in the third quarter of 2024 compared to $14.6 million in the third quarter of 2023 [5] - For the first nine months of 2024, income from investments before taxes was $48.5 million, compared to $19.2 million in the same period of 2023 [9] - Net investment income for the first nine months of 2024 was $49.2 million, compared to $30.4 million in the same period of 2023 [9]

Core Viewpoint - Erie Indemnity Company (ERIE) is expected to report third-quarter 2024 earnings on October 31, with a consensus estimate for earnings per share at $2.99, reflecting a 19.1% decrease from the previous year [1][5] Group 1: Revenue Expectations - Management fee revenue is projected to grow, with the Zacks Consensus Estimate at $773 million, driven by new policy growth and solid customer retention [2] - Administrative services revenue is anticipated to increase, with estimates of $16.5 million for management fee revenues and $189 million for administrative services reimbursement revenues [3] - Total revenues are estimated at $985 million, indicating a 14.7% increase from the prior year [4] Group 2: Operational Insights - Operating income is expected to improve due to higher management fee revenues linked to significant direct written premium growth [5] - The cost of operations related to policy issuance and renewal is likely to rise due to increased commissions and agent incentive compensation [4] Group 3: Earnings Prediction Model - The Zacks model does not predict an earnings beat for ERIE, as it lacks the necessary combination of a positive Earnings ESP and a favorable Zacks Rank [6] - ERIE has an Earnings ESP of 0.00%, with both the Most Accurate Estimate and the Zacks Consensus Estimate at $2.99 [7]

Group 1 - The article highlights Chris Lau as an experienced investor and economist with 30 years in life science, technology, and dividend-growth income stocks [1] - The investing group DIY Value Investing shares top stock picks of undervalued stocks with catalysts for upside and dividend-income recommendations [1] - The average returns from public articles show significant performance: 2023 Average Return at 8.4%, 2022 at 6.9%, 2021 at 29.9%, and 2020 at 49.9% [1] Group 2 - The flagship products include Top DIY Picks, which focus on undervalued stocks with upcoming catalysts that the market does not expect [2] - Dividend-income Champs are highlighted for their long history of dividend growth, accompanied by a printable calendar and quantitative scores [2] - DIY Risky Picks are mentioned for speculative allocations with positive momentum aiming for high returns [2]

Group 1 - Erie Indemnity Company will host a pre-recorded audio webcast to discuss its financial results for the third quarter on November 1st at 10 a.m. Eastern Time [1] - A press release with the financial results will be issued after the market closes on October 31st [1] - The pre-recorded audio will be accessible on the company's Investor Relations website [1] Group 2 - Erie Insurance Group is the 12th largest homeowners insurer, 13th largest automobile insurer, and 13th largest commercial lines insurer in the U.S. based on direct premiums written [3] - Founded in 1925, Erie Insurance is a Fortune 500 company and ranks as the 17th largest property/casualty insurer in the U.S. based on total lines net premium written [3] - Erie Insurance has nearly 7 million policies in force and operates in 12 states and the District of Columbia, with an A+ (Superior) rating from A.M. Best [3]

Company Overview - Erie Indemnity (ERIE) currently holds a Momentum Style Score of B, indicating potential for strong performance based on recent price trends and earnings estimate revisions [3][10] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [4][10] Price Performance - Over the past week, ERIE shares have increased by 2.9%, outperforming the Zacks Insurance - Brokerage industry, which rose by 0.8% [6] - In the last month, ERIE's price change is 9.87%, significantly higher than the industry's 3.45% [6] - Over the past quarter, ERIE shares have surged by 45.12%, and over the last year, they have gained 82.49%, while the S&P 500 has only increased by 3.93% and 27.48%, respectively [7] Trading Volume - The average 20-day trading volume for ERIE is 110,344 shares, which serves as a baseline for assessing price movements [8] Earnings Outlook - In the past two months, one earnings estimate for ERIE has been revised upward, while none have been lowered, leading to an increase in the consensus estimate from $10.05 to $11.41 [10] - For the next fiscal year, one estimate has also moved upwards with no downward revisions during the same period [10]

Group 1: Core Insights - Stocks with rising earnings estimates have consistently outperformed the S&P 500, while those with falling estimates have underperformed [1] - The Zacks Rank classifies stocks into five groups based on earnings estimates, allowing investors to capitalize on trends in earnings revisions [2] Group 2: Erie Indemnity (ERIE) - Erie Indemnity is classified as a Zacks Rank 1 (Strong Buy) and has a bullish earnings outlook across all timeframes [3] - The company has a 7.4% five-year annualized dividend growth rate with a sustainable payout ratio of 50% [3] - Following its latest quarterly results, Erie Indemnity reported 40% earnings growth on 18% higher sales, beating the Zacks Consensus EPS estimate by an average of 12% [4] Group 3: Duolingo (DUOL) - Duolingo is also a Zacks Rank 1 (Strong Buy) with a forecasted 430% EPS growth and a 40% sales increase for the current fiscal year [6] - The company has shown double-digit year-over-year sales growth in each of the last ten quarters [6] - Since becoming a Zacks Rank 1 on August 9, Duolingo shares have gained 15%, outperforming the S&P 500's 2% gain [7] Group 4: Maplebear Inc. (CART) - Maplebear, known as Instacart, is a leading grocery technology company with a Zacks Rank 1 (Strong Buy) [9] - The company is expected to achieve 110% EPS growth and 11% higher sales for the current fiscal year [9] - Since obtaining the Zacks Rank 1 on August 9, shares of Maplebear have gained over 10% following positive earnings estimate revisions [11] Group 5: Conclusion - The examples of Erie Indemnity, Duolingo, and Maplebear illustrate that following the Zacks Rank can lead to market-beating gains due to positive earnings estimate revisions [13]

Market Overview - Investors are preparing for a volatile market due to the upcoming release of key economic data, including job openings, jobless claims, and the nonfarm payrolls report, which may influence the Federal Reserve's decision on interest rate cuts [1] Investment Strategy - Constructing a portfolio of low-beta stocks is recommended to mitigate volatility, with specific stocks such as Erie Indemnity Company (ERIE), Sprouts Farmers Market Inc. (SFM), Newmont Corporation (NEM), and Unilever (UL) highlighted as potential investments [2] Stock Analysis Erie Indemnity Company - Erie Indemnity has experienced an increase in management fee revenues from policy issuance and renewal services, supported by a stronger balance sheet compared to industry peers [7] Sprouts Farmers Market Inc. - Sprouts Farmers Market is benefiting from increased customer engagement and solid comparable store sales, with a new $600 million share repurchase program approved by its board, and plans to open approximately 35 new stores in 2024, anticipating total sales growth of 9% to 10% [8] Newmont Corporation - Newmont, a leading gold explorer and producer, is focused on its divestiture program, share repurchases, and debt reduction, owning a collection of high-value, low-cost, and long-life mining assets expected to support sustainable and profitable gold production [8] Unilever - Unilever is recognized for its strong brand portfolio and generates significant turnover, with over 55% of its revenue coming from emerging markets, serving a vast customer base of 3.4 billion daily users [9]

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all. In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end. However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks ...

Note 8. Postretirement Benefits Our defined benefit pension plan funding policy is generally to contribute an amount equal to the greater of the target normal cost for the plan year, or the amount necessary to fund the plan to 100%. Accordingly, we made a $33 million contribution in January 2024. The funded pension plan net benefit asset is presented separately from the unfunded plan as a non-current asset on our Statements of Financial Position. (2) Pension plan income represents total plan income before r ...

| --- | --- | --- | --- | --- | --- | --- | --- | |-------|-----------------------|-------|---------------------|-------|---------------------|-------------|-------------------| | | Three months \n2024 | ended | June 30, \n2023 | | Six months \n2024 | ended | June 30, \n2023 | | | (Unaudited) | | | | | (Unaudited) | | | $ | 760,886 | $ | 633,339 | $ | 1,426,572 | $ | 1,191,429 | | | 17,051 | | 15,636 | | 33,985 | | 30,825 | | | 206,028 | | 184,466 | | 397,595 | | 357,293 | | | 6,473 | | 6,429 | | 12,987 | | ...