American Financial Group (AFG) Q1 Earnings and Revenues Miss Estimates

Core Insights - American Financial Group (AFG) reported quarterly earnings of $1.81 per share, missing the Zacks Consensus Estimate of $2.17 per share, and down from $2.76 per share a year ago, representing an earnings surprise of -16.59% [1] - The company posted revenues of $1.86 billion for the quarter, missing the Zacks Consensus Estimate by 3.79%, and down from $1.88 billion year-over-year [2] - The stock has underperformed the market, losing about 5.7% since the beginning of the year compared to the S&P 500's decline of -3.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.45 on revenues of $1.97 billion, and for the current fiscal year, it is $10.51 on revenues of $8.31 billion [7] - The estimate revisions trend for American Financial 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] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]