Core Viewpoint - Palomar (PLMR) is positioned as a strong investment opportunity due to significant revisions in the company's earnings estimates, indicating a positive earnings outlook that may continue to drive stock price growth [1][2]. Earnings Estimate Revisions - Analysts are increasingly optimistic about Palomar's earnings prospects, leading to higher earnings estimates that are expected to positively influence the stock price [2]. - For the current quarter, Palomar is projected to earn $1.54 per share, reflecting a year-over-year increase of +41.28%. Over the past 30 days, three estimates have been raised while one has been lowered, resulting in a 5.11% increase in the Zacks Consensus Estimate [4]. - For the full year, the earnings estimate is $6.54 per share, representing a +28.49% change from the previous year. In the last month, five estimates have been revised upward with no negative revisions, leading to a 10.37% increase in the consensus estimate [5]. Zacks Rank and Performance - Palomar currently holds a Zacks Rank 1 (Strong Buy), which is based on the positive estimate revisions. This ranking is associated with a strong historical performance, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3][6]. - The stock has appreciated by 13.9% over the past four weeks, indicating investor confidence in the company's earnings growth potential [7].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Palomar (PLMR) - Palomar currently holds a Momentum Style Score of A, indicating strong momentum characteristics [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market [3] Performance Metrics - Over the past week, PLMR shares have increased by 15.47%, significantly outperforming the Zacks Insurance - Property and Casualty industry, which rose by only 0.01% [5] - In a longer timeframe, PLMR's shares have risen by 13.93% over the past month compared to the industry's 0.98% [5] - Over the last quarter, PLMR shares increased by 13.3%, and over the past year, they have gained 68.3%, while the S&P 500 only moved 4.18% and 24.21%, respectively [6] Trading Volume - The average 20-day trading volume for PLMR is 186,666 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Outlook - In the past two months, five earnings estimates for PLMR have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $5.92 to $6.54 [9] - For the next fiscal year, four estimates have also moved higher without any downward revisions [9] Conclusion - Considering the strong performance metrics and positive earnings outlook, PLMR is positioned as a 1 (Strong Buy) stock with a Momentum Score of A, making it a compelling investment option [11]

Core Insights - Palomar Holdings, Inc. (PLMR) reported a fourth-quarter 2024 operating income of $1.52 per share, exceeding the Zacks Consensus Estimate by 22.6% and reflecting a year-over-year increase of 36.9% [1][2] Financial Performance - Total revenues rose 53.9% year over year to $157 million, driven by higher premiums and net investment income, surpassing the Zacks Consensus Estimate by 6.6% [3] - Gross written premiums increased 23.3% year over year to $373.7 million, while net earned premiums surged 54.6% year over year to $135.6 million, both figures slightly below estimates [3] - Net investment income grew 61.3% year over year to $11.3 million, exceeding both the Zacks Consensus Estimate and internal estimates [4] - Adjusted underwriting income was $41 million, up 39.9% year over year, with total expenses rising 54% to $110.8 million due to increased losses and underwriting expenses [5] Loss Ratios and Ratios - The loss ratio was reported at 25.7%, deteriorating by 660 basis points year over year, while the adjusted combined ratio, excluding catastrophe losses, deteriorated by 290 basis points to 71.7 [6] Balance Sheet and Equity - Cash and cash equivalents increased 55.4% from the end of 2023 to $80.5 million, and shareholder equity rose 54.7% to $729 million [7] - The annualized adjusted return on equity for 2024 was 22.2%, reflecting a year-over-year increase of 30 basis points [7] Future Outlook - For 2025, Palomar anticipates adjusted net income in the range of $180-192 million, factoring in catastrophe losses between $8 million and $12 million [8]

Financial Data and Key Metrics Changes - For Q4 2024, adjusted net income was $41.3 million or $1.52 per share, representing a 47.5% increase from $28 million or $1.11 per share in Q4 2023 [47] - Gross written premiums for Q4 were $373.7 million, a 23% increase year-over-year, and 39% growth excluding runoff business [48] - The annualized adjusted return on equity for Q4 was 23.1%, compared to 25.1% for the same period last year [48] Business Line Data and Key Metrics Changes - The earthquake franchise grew gross written premiums by 20% in Q4, maintaining a balanced approach between residential and commercial insurance [19] - The inland marine and other property category grew 36% year-over-year, with strong premium growth from builders risk and Hawaii hurricane lines [22] - The casualty segment saw a significant premium increase of 112% year-over-year, now representing 50% of the total portfolio [25] Market Data and Key Metrics Changes - The company exited 2024 as the third largest writer of earthquake insurance in North America, indicating strong market positioning [19] - The California homeowners market is experiencing dislocation due to recent wildfires, which may lead to increased opportunities for the company's earthquake insurance products [15][72] Company Strategy and Development Direction - The company aims to integrate and operate effectively, build new market leaders, and maintain a conservative risk appetite while focusing on profitable growth [40][41] - The acquisition of First Indemnity of America (FIA) is expected to enhance the company's casualty product group and provide growth opportunities in the surety market [36] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the reinsurance market, noting that recent wildfires may slow the pace of rate decreases but could also create opportunities in the earthquake insurance market [16][37] - The company anticipates adjusted net income guidance for 2025 to be in the range of $180 million to $192 million, reflecting a growth of 39% [60] Other Important Information - The company reported a stockholders' equity increase of 55% year-over-year, reaching $729 million [58] - The adjusted combined ratio for the full year was 73.7%, with a loss ratio of 26.4% [59] Q&A Session Summary Question: Clarification on reinsurance pricing expectations - Management indicated that the guidance range for reinsurance pricing is built around a flat renewal to a potential decrease of 5%, reflecting a conservative approach given market conditions [68] Question: Opportunities in the disrupted California market - Management noted that the disruption in the California market could lead to opportunities in residential earthquake insurance as insurers reduce their exposure [72] Question: Impact of 6/1 pricing on outlook - Management stated that lower pricing on excess of loss reinsurance would positively impact results, especially since it constitutes a significant expense [79] Question: Elasticity of demand for earthquake insurance - Management highlighted that the residential earthquake market remains underpenetrated, and rising homeowners' costs could lead to increased opportunities as insurers nonrenew policies [85] Question: Crop insurance exposure and reinsurance structure - Management confirmed that the crop business will focus on core Midwest states, with a shift towards a combination of quota share and stop loss in reinsurance [136]

Core Insights - Palomar (PLMR) reported revenue of $156.96 million for Q4 2024, a year-over-year increase of 53.4% and exceeding the Zacks Consensus Estimate of $147.22 million by 6.62% [1] - The company achieved an EPS of $1.52, up from $1.11 a year ago, surpassing the consensus EPS estimate of $1.24 by 22.58% [1] Financial Performance Metrics - Loss Ratio stood at 25.7%, better than the average estimate of 27.7% from six analysts [4] - Combined Ratio was reported at 75.9%, compared to the average estimate of 80% from five analysts [4] - Expense Ratio was 50.2%, lower than the estimated 52.2% by five analysts [4] - Adjusted Combined Ratio was 71.7%, outperforming the three-analyst average estimate of 76.8% [4] - Net Investment Income was $11.32 million, exceeding the average estimate of $10.17 million and reflecting a year-over-year increase of 61.3% [4] - Commission and Other Income was $0.75 million, below the estimated $0.95 million, representing a decline of 52.7% year-over-year [4] - Net Earned Premiums reached $144.89 million, surpassing the average estimate of $136.51 million and showing a year-over-year increase of 54.6% [4] Stock Performance - Palomar's shares returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +4.3% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

分组1 - Palomar reported quarterly earnings of $1.52 per share, exceeding the Zacks Consensus Estimate of $1.24 per share, and showing an increase from $1.11 per share a year ago, representing an earnings surprise of 22.58% [1] - The company achieved revenues of $156.96 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.62%, and up from $102.35 million year-over-year [2] - Palomar has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 4.5% since the beginning of the year, outperforming the S&P 500's gain of 3.2% [3] - The current consensus EPS estimate for the upcoming quarter is $1.46 on revenues of $163.09 million, and for the current fiscal year, it is $5.93 on revenues of $684.68 million [7] - The Zacks Industry Rank for Insurance - Property and Casualty is in the top 37% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] 分组3 - The estimate revisions trend for Palomar is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Net income for Q4 2024 was $35.0 million, a 35.0% increase from $25.9 million in Q4 2023[2] - Adjusted net income for Q4 2024 was $41.3 million, up 47.5% from $28.0 million in Q4 2023[10] - Net income for 2024 was $117,573,000, reflecting a 48.4% increase from $79,201,000 in 2023[35] - Adjusted net income rose by 42.8% to $133,511,000 in 2024 compared to $93,520,000 in 2023[35] - The company expects adjusted net income for full year 2025 to be between $180 million and $192 million[14] - The company reported total revenues of $155,757 thousand for Q4 2024, a 47.8% increase from $105,393 thousand in Q4 2023[40] - Total revenue for the year ended December 31, 2024, was $553,863, an increase of $177,937 or 47.3% from $375,926 in 2023[46] Premiums and Underwriting - Gross written premiums increased by 23.3% to $373.7 million in Q4 2024 compared to $303.2 million in Q4 2023[6] - Full year 2024 gross written premiums reached $1.5 billion, a 35.1% increase from $1.1 billion in 2023[10] - Gross written premiums increased by 35.1% to $1,541,962,000 in 2024 from $1,141,558,000 in 2023[35] - Net written premiums rose by 57.3% to $644,851,000 in 2024 compared to $410,027,000 in 2023[35] - Net earned premiums grew by 47.6% to $510,687,000 in 2024 from $345,913,000 in 2023[35] - Underwriting income increased by 38.6% to $111,942,000 in 2024, up from $80,771,000 in 2023[35] - Gross earned premiums for Q4 2024 were $371,654, an increase of $95,152 or 34.4% compared to Q4 2023[44] - Net earned premiums for Q4 2024 reached $144,890, up $51,142 or 54.6% from $93,748 in Q4 2023[44] Ratios and Returns - The total loss ratio for Q4 2024 was 25.7%, compared to 19.1% in Q4 2023[10] - The combined ratio for Q4 2024 was 75.9%, slightly up from 74.2% in Q4 2023[10] - Annualized adjusted return on equity for Q4 2024 was 23.1%, down from 25.1% in Q4 2023[13] - The annualized return on equity for 2024 was 19.6%, compared to 18.5% in 2023[35] - The adjusted combined ratio excluding catastrophe losses improved to 66.1% in Q4 2024 from 68.8% in Q4 2023, reflecting better underwriting performance[49] Investment Income - Net investment income increased by 61.3% to $11.3 million in Q4 2024 compared to $7.0 million in Q4 2023[11] - The company’s net investment income for the year ended December 31, 2024, was $35,824 thousand, an increase of 51.1% from $23,705 thousand in 2023[40] Expenses and Liabilities - The company’s total expenses for Q4 2024 were $110,795 thousand, up 54.0% from $71,935 thousand in Q4 2023[40] - Total liabilities grew to $1,533,190,000 in 2024, up from $1,236,770,000 in 2023[37] Catastrophe and Losses - Catastrophe losses for Q4 2024 were $8,122, significantly lower than $27,846 in Q4 2023[44] - The company reported catastrophe losses of $8,122,000 in Q4 2024, compared to $10,000 in Q4 2023, highlighting increased exposure to catastrophic events[49] - The catastrophe loss ratio for Q4 2024 was 5.6%, compared to 0.0% in Q4 2023, indicating a significant increase in catastrophe losses[49] Equity and Shares - Tangible stockholders' equity rose to $715,788,000 in Q4 2024, up from $458,937,000 in Q4 2023, an increase of 56.0%[49] - The weighted-average diluted shares outstanding increased to 27,206,225 in Q4 2024 from 25,272,149 in Q4 2023, reflecting a dilution effect[49] Future Outlook - The company plans to continue expanding its specialty insurance products, focusing on earthquake and casualty segments for future growth[41]

LA JOLLA, Calif., Feb. 12, 2025 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ:PLMR) (“Palomar” or “Company”) reported net income of $35.0 million, or $1.29 per diluted share, for the fourth quarter of 2024 compared to net income of $25.9 million, or $1.02 per diluted share, for the fourth quarter of 2023. Adjusted net income(1) was $41.3 million, or $1.52 per diluted share, for the fourth quarter of 2024 as compared to $28.0 million, or $1.11 per diluted share, for the fourth quarter of 2023. Fourth Q ...

LA JOLLA, Calif., Feb. 05, 2025 (GLOBE NEWSWIRE) -- Palomar Holdings, Inc. (NASDAQ: PLMR) (the “Company”) today announced that it will release its fourth quarter and full year 2024 results after the market close on Wednesday, February 12, 2025, and will host a conference call at 12:00 p.m. (Eastern Time) the following day, Thursday, February 13, 2025. The conference call can be accessed live by dialing 1-877-423-9813 or for international callers, 1-201-689-8573, and requesting to be joined to the Palomar Fo ...

The market expects Palomar (PLMR) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, t ...