Texas Roadhouse earnings missed by $0.05, revenue topped estimates
On Tuesday, TD Cowen maintained its Hold rating on Everest Group shares (NYSE:EG), with a steady price target of $405.00. According to InvestingPro data, the stock is currently trading near its 52-week low of $341, with analyst targets ranging from $354 to $476. The company’s shares are currently trading at an attractive P/E ratio of 5.4x. The firm’s analysis acknowledged the company’s fourth-quarter earnings per share (EPS) missed expectations, aligning with predictions due to a significant casualty reserve charge disclosed on January 27th. The report by TD Cowen highlighted that the earnings miss was anticipated as their estimates and the consensus did not fully account for the reserve charge. InvestingPro analysis reveals that 8 analysts have revised their earnings downwards for the upcoming period, though the company maintains a GREAT financial health score of 3.05.
Everest Group’s gross written premiums (GWP) slightly exceeded TD Cowen’s projections, while the net investment income (NII) fell short, attributed to weaker limited partnership (LP) returns. The analyst pointed out that the pre-announcement of the reserve charge had set the stage for the quarter’s results, suggesting that the market’s attention would likely shift towards the company’s future outlook and its execution of plans.
The report suggested that no substantial movement in Everest Group’s stock price was expected compared to its peers, pending further commentary from management. This outlook was based on the fact that the market had already been informed about the casualty reserve charge and had likely adjusted its expectations accordingly.
TD Cowen’s commentary indicated that while the quarter was messy due to the reserve charge, the impact on the stock’s performance was likely already factored in by investors. The firm’s reiteration of the Hold rating and price target implies a watchful approach to Everest Group’s stock, with future management discussions potentially providing more insight into the company’s trajectory. For a deeper understanding of Everest Group’s valuation and prospects, InvestingPro subscribers can access a comprehensive Pro Research Report, which is part of the platform’s coverage of 1,400+ US equities.
In other recent news, Everest Re Group has reported a surprising Q4 net loss of $593 million, contrasting with the previous year’s Q4 net income of $804 million. This was accompanied by a shortfall in revenue, which came in at $4.03 billion against analyst estimates of $4.42 billion. The company has also announced a significant strengthening of reserves in its U.S. casualty business, amounting to $1.3 billion.
Despite these developments, Everest Re’s Reinsurance segment reported a healthy growth of 12.6% YoY in gross written premiums, reaching $3.3 billion. For the full year 2024, the company reported net income of $1.37 billion on revenue of $17.28 billion, with a total shareholder return of 9.2% and a net income ROE of 9.6%.
Looking ahead, Everest Re anticipates pre-tax net catastrophe losses of $350-450 million in Q1 2025 due to California wildfires, based on an estimated industry loss of $35-45 billion. These are recent developments that have been reported.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.