RenaissanceRe (RNR) Expected to Beat Earnings Estimates: Can the Stock Move Higher?

Core Viewpoint - The market anticipates a year-over-year decline in RenaissanceRe's earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - RenaissanceRe is expected to report quarterly earnings of $7.39 per share, reflecting a year-over-year decrease of 37.2% [3]. - Revenue projections stand at $2.99 billion, indicating a 14% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.09% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for RenaissanceRe is higher than the Zacks Consensus Estimate, leading to a positive Earnings ESP of +9.14% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [8]. - RenaissanceRe's current Zacks Rank is 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, RenaissanceRe exceeded the expected earnings of $7.89 per share by delivering $10.23, resulting in a surprise of +29.66% [12]. - The company has consistently beaten consensus EPS estimates over the last four quarters [13]. Industry Comparison - W.R. Berkley, another player in the insurance sector, is expected to report earnings of $0.94 per share, reflecting a year-over-year decline of 3.1% [17]. - W.R. Berkley's revenue is projected at $3.51 billion, up 9.1% from the previous year, but it has a negative Earnings ESP of -1.77%, making it difficult to predict an earnings beat [18].