RLI Corp. (RLI) Tops Q2 Earnings Estimates

Group 1: Earnings Performance - RLI Corp. reported quarterly earnings of $0.84 per share, exceeding the Zacks Consensus Estimate of $0.75 per share, but down from $0.86 per share a year ago, representing an earnings surprise of +12.00% [1] - The company posted revenues of $441.32 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 0.52%, compared to $413.03 million in the same quarter last year [2] - Over the last four quarters, RLI Corp. has surpassed consensus EPS estimates three times [2] Group 2: Stock Performance and Outlook - RLI Corp. shares have declined approximately 14.8% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $448.88 million, and for the current fiscal year, it is $2.97 on revenues of $1.78 billion [7] - The estimate revisions trend for RLI Corp. was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Insurance - Property and Casualty industry, to which RLI Corp. belongs, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable industry outlook [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]