Root, Inc. (ROOT) Q1 Earnings and Revenues Beat Estimates

Core Viewpoint - Root, Inc. reported quarterly earnings of $1.07 per share, significantly exceeding the Zacks Consensus Estimate of $0.45 per share, and showing a turnaround from a loss of $0.42 per share a year ago, indicating strong performance and growth potential [1][2] Financial Performance - The company achieved revenues of $349.4 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 14.56% and showing an increase from $254.9 million in the same quarter last year [2] - Over the last four quarters, Root has consistently exceeded consensus EPS estimates, achieving this four times [2] Stock Performance - Root shares have increased approximately 89.8% since the beginning of the year, contrasting with a decline of -4.7% in the S&P 500 [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for continued outperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $320 million, and for the current fiscal year, it is also $0.18 on revenues of $1.29 billion [7] - The trend of estimate revisions for Root has been favorable ahead of the earnings release, suggesting positive future performance [6] Industry Context - The Insurance - Property and Casualty industry, to which Root belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a strong industry outlook [8] - Empirical research suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1, highlighting the potential for growth within this sector [8]