Core Insights - Palomar (PLMR) reported quarterly earnings of $1.87 per share, exceeding the Zacks Consensus Estimate of $1.59 per share, and showing a significant increase from $1.09 per share a year ago, representing an earnings surprise of 17.61% [1] - The company achieved revenues of $176.97 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.03%, and up from $115.53 million year-over-year [2] - Palomar has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The sustainability of Palomar's stock price movement will depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.60 on revenues of $181.43 million, and for the current fiscal year, it is $6.75 on revenues of $751.42 million [7] Industry Context - The Insurance - Property and Casualty industry, to which Palomar belongs, is currently ranked in the top 17% of over 250 Zacks industries, indicating a favorable outlook for stocks in this sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Core Insights - Palomar Holdings, Inc. reported a strong financial performance for the first quarter of 2025, with net income increasing to $42.9 million, or $1.57 per diluted share, compared to $26.4 million, or $1.04 per diluted share, in the same period of 2024 [1][7][32] - Adjusted net income rose significantly by 84.6% to $51.3 million, or $1.87 per diluted share, from $27.8 million, or $1.09 per diluted share, year-over-year [1][7][32] - The company achieved a gross written premium growth of 20.1%, totaling $442.2 million, driven by new products and a balanced mix of residential and commercial property products [4][40] Financial Performance - The adjusted combined ratio improved to 68.5% from 73.0% in the prior year, indicating better underwriting efficiency [6][32] - The total loss ratio decreased to 23.6% from 24.9% year-over-year, with a catastrophe loss ratio of -0.3% compared to 3.1% in the previous year [5][32] - Net earned premiums increased by 52.1% to $164.1 million from $107.9 million in the first quarter of 2024 [4][32] Underwriting and Investment Results - Underwriting income for the quarter was $44.1 million, up from $25.0 million in the same period last year, resulting in a combined ratio of 73.1% compared to 76.9% [6][32] - Net investment income surged by 69.1% to $12.1 million, attributed to higher yields on invested assets and increased average investment balances [7][32] Strategic Initiatives - The company is focused on executing its 2025 strategic imperatives, including the successful acquisition of Advanced AgProtection, which is expected to enhance its Crop franchise [3][11] - Palomar's same-store premium growth rate was reported at 37%, reflecting strong underlying momentum across its specialty products portfolio [3][11] Outlook - For the full year 2025, Palomar expects adjusted net income to range between $186 million and $200 million, an increase from the initial outlook of $180 million to $192 million [11]

Financial Performance - Net income for Q1 2025 was $42.9 million, or $1.57 per diluted share, compared to $26.4 million, or $1.04 per diluted share in Q1 2024[2] - Adjusted net income increased by 84.6% to $51.3 million, or $1.87 per diluted share, from $27.8 million, or $1.09 per diluted share in Q1 2024[4] - Net income for the quarter was $42,922, up 62.7% from $26,382 in the same period last year[35] - Adjusted net income surged to $51,306, an 84.6% increase compared to $27,794 in the previous year[35] - The annualized adjusted return on equity improved to 27.0% in Q1 2025 from 22.9% in Q1 2024[47] Premium Growth - Gross written premiums rose by 20.1% to $442.2 million compared to $368.1 million in Q1 2024[5] - Same-store premium growth rate was 37%, indicating strong underlying momentum across the specialty products portfolio[4] - Gross written premiums increased to $442,163, up 20.1% from $368,078 in the prior year[35] - Net written premiums rose to $211,418, reflecting a significant increase of 51.1% compared to $139,907 in the same period last year[35] - Net earned premiums reached $164,070, a 52.1% increase from $107,866 in the previous year[35] - The company reported a gross earned premium of $375,776,000 in Q1 2025, a 24.1% increase from $302,872,000 in Q1 2024[42] Underwriting Efficiency - The adjusted combined ratio improved to 68.5% from 73.0% in Q1 2024, while the total loss ratio decreased to 23.6% from 24.9%[9] - Underwriting income improved to $44,065, representing a 76.6% increase from $24,955 in the prior year[35] - The combined ratio decreased to 73.1% in Q1 2025 from 76.9% in Q1 2024, showing improved underwriting efficiency[47] - Catastrophe loss ratio improved to (0.3)% in Q1 2025 from 3.1% in Q1 2024, indicating better risk management[49] Investment Income - Net investment income increased by 69.1% to $12.1 million compared to $7.1 million in Q1 2024[8] Assets and Liabilities - Cash and invested assets totaled $1.2 billion at March 31, 2025[8] - Total assets grew to $2,426,510, an increase from $2,262,220 as of December 31, 2024[37] - Total liabilities rose to $1,636,061, compared to $1,533,190 at the end of 2024[37] - Total stockholders' equity increased to $790,449, up from $729,030 as of December 31, 2024[37] - The company’s tangible stockholders' equity increased to $765,524,000 as of March 31, 2025, compared to $715,788,000 as of December 31, 2024[51] Future Outlook - The company expects adjusted net income for the full year 2025 to be between $186 million and $200 million, an increase from the previous outlook of $180 million to $192 million[13] - The acquisition of Advanced AgProtection is expected to enhance the Crop franchise's operational scale and talent[4]

Core Viewpoint - Palomar Holdings (PLMR) is anticipated to show significant growth in both revenue and earnings for the first quarter of 2025, with a revenue estimate of $171.2 million, reflecting a 48.7% year-over-year increase, and an earnings estimate of $1.59 per share, indicating a 45.9% increase from the previous year [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for PLMR's first-quarter revenues is $171.2 million, which is a 48.7% increase from the same quarter last year [1]. - The consensus estimate for earnings per share is $1.59, suggesting a year-over-year increase of 45.9% [2]. Earnings Prediction Model - The earnings prediction model indicates a likely earnings beat for PLMR, supported by a positive Earnings ESP of +6.29% and a Zacks Rank of 2 (Buy) [2][3]. Factors Influencing Q1 Results - PLMR's earnings are expected to benefit from a fee-based revenue stream, increased policy volume, strong retention rates, and strategic product expansion [4]. - The company's focus on the crop business and the Residential Earthquake business is likely to have positively impacted performance [5]. Premium and Investment Income - The Zacks Consensus Estimate for premiums earned is $160 million, with an internal estimate of $161.7 million [5]. - Investment income is projected to rise due to high-quality fixed income securities and increased fixed-income yields, with a consensus estimate of $11.3 million [6]. Combined Ratio and Expenses - The combined ratio is estimated at 75, with an internal estimate of 76.9, indicating improved performance due to a reinsurance policy limiting catastrophe losses [7]. - Total expenses are expected to rise to $124.9 million, driven by higher losses and other underwriting expenses [8].

Group 1 - Palomar Holdings, Inc. will release its first quarter 2025 results after market close on May 5, 2025, and will host a conference call on May 6, 2025, at 12:00 p.m. Eastern Time [1] - The conference call can be accessed by dialing specific numbers for both domestic and international callers, with a replay available starting at 4:00 p.m. Eastern Time on May 6, 2025 [2] - Interested parties can also listen to a simultaneous webcast of the conference call on the Company's investor relations website, with an online replay available for a limited time [3] Group 2 - Palomar Holdings, Inc. is the holding company for several subsidiaries, including Palomar Specialty Insurance Company and Palomar Specialty Reinsurance Company Bermuda Ltd., and serves clients in various insurance product categories [4] - The financial strength rating of Palomar's insurance subsidiaries is "A" (Excellent) from A.M. Best, indicating a strong financial position [4]

Core Viewpoint - Palomar (PLMR) shows potential as a stock pick due to its recent technical performance and positive earnings estimate revisions [1][4]. Technical Analysis - PLMR has surpassed resistance at the 20-day moving average, indicating a short-term bullish trend [1]. - The 20-day simple moving average is a key trading tool that helps smooth out price fluctuations and signals trend reversals [1][2]. - The stock's price is currently above the 20-day moving average, which is considered a positive trend [2]. Performance Metrics - Over the past four weeks, PLMR has gained 9.7% [4]. - The company holds a Zacks Rank 1 (Strong Buy), suggesting further upward movement potential [4]. Earnings Estimates - There have been 6 upward revisions for PLMR's earnings estimates for the current fiscal year, with no downward revisions [4]. - The consensus earnings estimate has also increased, reinforcing the bullish outlook for the stock [4][5].

Palomar (PLMR) shares ended the last trading session 9.2% higher at $143.13. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 0.1% loss over the past four weeks.PLMR's shares surged in response to the broader market rally after President Trump announced a 90-day pause of reciprocal tariffs for most countries.This insurance holding company is expected to post quarterly earnings of $1.61 per share in its upcoming repo ...

Investors interested in Finance stocks should always be looking to find the best-performing companies in the group. Has Palomar (PLMR) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Finance sector should help us answer this question.Palomar is a member of the Finance sector. This group includes 859 individual stocks and currently holds a Zacks Sector Rank of #4. The Zacks Sector Rank gauges the strength of our 16 individual secto ...

Market Overview - The three major U.S. indexes, Nasdaq Composite, S&P 500, and Dow Jones Industrial Average, experienced significant declines of 9.89%, 9.58%, and 8.78% respectively last week due to President Trump's reciprocal tariff policies implemented on April 2, 2025, raising fears of a near-term recession [1] - Analysts predict a slowdown in economic growth and a rise in short-term inflation, with the core personal consumption expenditure (PCE) inflation marking a monthly gain of 0.4% in February 2025, the largest since January 2024 [2] Economic Indicators - The Institute of Supply Management (ISM) reported that manufacturing PMI contracted to 49% and services PMI to 50.8% in March, indicating a contraction in manufacturing activities [3] - Job openings fell by 194,000 to 7.568 million in February, marking the lowest level since September 2024, with the employment index declining to 46.2% in March from 53.9% in February [3] Investment Performance - PhenixFIN Corporation (PFX) shares gained 6.2% since being upgraded to Zacks Rank 1 on February 12, while United Fire Group, Inc. (UFCS) returned 5.2% since its upgrade on February 13, both outperforming the S&P 500's significant declines [4][5] - A hypothetical portfolio of Zacks Rank 1 stocks returned -3.48% in January 2025, compared to -0.60% for the S&P 500, but had a strong performance in 2024 with a return of +22.3% [5][6] Zacks Recommendations - EZCORP, Inc. (EZPW) and Palomar Holdings, Inc. (PLMR) saw share increases of 13.4% and 5% respectively since their Zacks Recommendation upgrades to Outperform [8] - The Zacks Focus List portfolio, which includes HCA Healthcare, Inc. (HCA) and Palantir Technologies Inc. (PLTR), returned +0.87% this year through February 2025, outperforming the S&P 500's -14.2% decline over the same period [11][12] Long-term Performance - The Zacks Top 10 portfolio has produced a cumulative return of +1948.35% since 2012, significantly outperforming the S&P 500's +469.98% return in the same timeframe [24]

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Palomar currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period. You can see the current list of Zacks #1 Rank Stocks here >>> Set to Beat the Market? Momentum investing revolves around the idea ...