Mercury General (MCY) Reports Q1 Loss, Lags Revenue Estimates

Core Insights - Mercury General reported a quarterly loss of $2.29 per share, significantly better than the Zacks Consensus Estimate of a loss of $4, and compared to earnings of $0.78 per share a year ago, indicating an earnings surprise of 42.75% [1] - The company posted revenues of $1.37 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 4.48%, but showing an increase from $1.24 billion year-over-year [2] - The stock has underperformed, losing about 11.9% since the beginning of the year, compared to a decline of 3.9% in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.10 on revenues of $1.45 billion, and for the current fiscal year, it is -$0.50 on revenues of $5.88 billion [7] - The estimate revisions trend for Mercury General is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Insurance - Property and Casualty industry is currently in the top 17% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Hagerty, Inc., another company in the same industry, is expected to report quarterly earnings of $0.02 per share, reflecting a year-over-year decline of 50%, with revenues projected at $301.58 million, up 11% from the previous year [9]