Axis Capital (AXS) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Axis Capital, with a focus on how actual results compare to estimates, which could significantly impact stock price [1][2]. Earnings Expectations - Axis Capital is expected to report quarterly earnings of $2.72 per share, reflecting a year-over-year change of +0.4% [3]. - Revenues are projected to be $1.63 billion, an increase of 3.4% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 1.34% lower in the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4][12]. - The Most Accurate Estimate for Axis Capital is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.86% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [9][10]. - Axis Capital's current Zacks Rank is 2 (Buy), but the negative Earnings ESP complicates predictions for an earnings beat [12]. Historical Performance - In the last reported quarter, Axis Capital exceeded expectations with earnings of $3.29 per share against an estimate of $2.88, resulting in a surprise of +14.24% [13]. - The company has beaten consensus EPS estimates in the last four quarters [14]. Industry Comparison - Cincinnati Financial, a peer in the insurance industry, is expected to report earnings of $2.01 per share, indicating a year-over-year change of +41.6% and revenues of $2.85 billion, up 11.3% [18][19]. - Cincinnati Financial's consensus EPS estimate has been revised 1.1% higher, with a positive Earnings ESP of +4.49%, suggesting a likely earnings beat [19][20].