Gear Up for Arch Capital (ACGL) Q3 Earnings: Wall Street Estimates for Key Metrics

Core Viewpoint - Analysts project Arch Capital Group (ACGL) will report quarterly earnings of $1.98 per share, a decline of 14.3% year over year, with revenues expected to reach $4.04 billion, an increase of 14.9% from the same quarter last year [1] Earnings Estimates - The consensus EPS estimate for the quarter has been adjusted downward by 1% over the past 30 days, indicating a reassessment by covering analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions to the stock [3] Revenue Projections - Consensus estimate for 'Revenues- Net investment income' is $372.52 million, reflecting a change of +38.5% from the prior-year quarter [5] - 'Revenues- Net premiums earned' are forecasted to reach $3.65 billion, indicating a change of +12.3% from the year-ago quarter [5] - 'Revenues- Net premiums earned- Insurance Segment' is expected to be $1.52 billion, a change of +7.6% from the year-ago quarter [5] - 'Revenues- Net premiums earned- Reinsurance Segment' is projected at $1.84 billion, showing a change of +19.5% from the prior-year quarter [6] Loss and Expense Ratios - The 'Loss Ratio - Total' is expected to reach 58.6%, compared to 50.7% from the previous year [6] - The estimated 'Combined Ratio - Total' is 87.0%, up from 77.9% year-over-year [6] - 'Expense Ratio - Other Operating Expense Ratio' is projected at 9.8%, compared to 9.5% last year [7] - 'Expense Ratio - Total Acquisition Expense Ratio' is expected to be 18.8%, up from 17.7% year-over-year [7] - 'Combined Ratio - Mortgage Segment' is projected to reach 25.4%, significantly higher than 4.7% from the previous year [7] Underwriting Ratios - 'Underwriting Expense Ratio - Other Operating Expense Ratio - Mortgage Segment' is likely to be 16.1%, slightly down from 16.2% last year [8] - 'Underwriting Expense Ratio - Total' is expected to be 28.3%, compared to 27.2% from the same quarter last year [8] Market Performance - Shares of Arch Capital have decreased by 7.2% in the past month, contrasting with a +2% move of the Zacks S&P 500 composite [9] - With a Zacks Rank 3 (Hold), ACGL is anticipated to mirror the overall market performance in the near future [9]