American Financial Group (AFG) Q4 Earnings Miss Estimates

Core Viewpoint - American Financial Group (AFG) reported quarterly earnings of $3.12 per share, missing the Zacks Consensus Estimate of $3.20 per share, but showing an increase from $2.84 per share a year ago, indicating a -2.50% earnings surprise [1] Group 1: Earnings Performance - The company posted revenues of $2.08 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.46%, compared to $1.94 billion in the same quarter last year [2] - Over the last four quarters, AFG has surpassed consensus EPS estimates just once [2] - The current consensus EPS estimate for the upcoming quarter is $2.95 on revenues of $1.97 billion, and for the current fiscal year, it is $11.65 on revenues of $8.4 billion [7] Group 2: Stock Performance and Outlook - AFG shares have lost about 0.2% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The estimate revisions trend for AFG is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] - The outlook for the insurance industry can significantly impact AFG's stock performance, with the Insurance - Property and Casualty sector currently in the top 36% of Zacks industries [8] Group 3: Comparative Analysis - Another company in the same industry, Donegal Group (DGICA), is expected to report quarterly earnings of $0.20 per share, reflecting a year-over-year change of +281.8%, with revenues expected to be $251.4 million, up 6% from the previous year [9][10]