ACIC Earnings Prediction
The chart below shows how ACIC performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ACIC sees a +0.12% change in stock price 10 days leading up to the earnings, and a -7.43% change 10 days following the report. On the earnings day itself, the stock moves by +3.14%. This data can give you a slight idea of what to expect for the next quarter's release.
ACIC Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
82.14M
39.89%
19.63%
Gross Margin
--
--
--
Operating Margin
48.19%
40.13%
16.85%
Net Margin
33.69%
37.62%
21.27%
EPS
0.57
137.50%
46.15%
No Data Available
ACIC Earnings Analysis
American Coastal Insurance Corporation Common Stock Corporation (ACIC.O) Earnings Conference Call
Positive
Total Revenue Surge: Significant total revenue growth of $82.1 million in Q3 2024, driven by favorable reinsurance pricing and a reduction in quota share from 40% to 20%.
Net Income Increase: Net income for Q3 2024 reached $28.1 million, with core income increasing by $11.4 million year-over-year due to lower ceded earned premiums.
Combined Ratio Improvement: The combined ratio improved to 57.7%, significantly below the 65% target and down from 62.7% in the same period last year.
Liquidity Position Improvement: Cash and investments surged by 83.1% to $571.1 million, indicating a strong liquidity position for the company.
Stockholders' Equity Increase: Stockholders' equity rose by 53.8% to $259.6 million, reflecting robust underwriting results and a 49.2% increase in book value per share to $5.38.
Negative
Hurricane Loss Estimates: 1. Significant Hurricane Losses: American Coastal estimates a total of $19.8 million in after-tax losses from Hurricanes Debby, Helene, and Milton, with Milton alone expected to result in a $16.2 million net loss in Q4.
Rising Operating Expenses: 2. Increased Operating Expenses: Operating expenses rose by $9.5 million, primarily due to a 53.7% increase in policy acquisition costs, which were driven by a decrease in ceding commission income.
Increased Ceded Premiums Impact: 3. High Ceded Premiums: The company will incur approximately $13 million in additional ceded premiums between October 2024 and May 2025 to reinstate the limit used by Hurricane Milton, impacting future profitability.
Hurricane Milton Claims Impact: 4. Claims from Hurricane Milton: The company has received 154 claims from Hurricane Milton, with an estimated gross loss ranging between $150 million and $200 million, indicating a significant financial impact.
Future Windstorm Retention Impact: 5. Retention Impact: The net retention for future named windstorms could drop to $10.3 million after reinsurance and tax benefits, reflecting increased risk exposure due to recent hurricane activity.
ACIC FAQs
How does ACIC typically perform around its earnings report dates?
Is American Coastal Insurance Corporation (ACIC) Q3 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
ACIC Earning Call Sentiment
American Coastal Insurance Corporation (ACIC) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ACIC.O
-2.4%Positive
The earnings call summary indicates strong financial performance, with significant revenue growth, improved combined ratio, and increased liquidity. Despite hurricane losses, the company expects to remain profitable, supported by favorable reinsurance pricing and strategic initiatives. However, the lack of a shareholder return plan and increased operational expenses pose some concerns. Given the overall positive financial outlook and strategic actions, the stock is likely to see a positive movement in the short term.