ERIE Earnings Prediction
The chart below shows how ERIE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ERIE sees a +1.22% change in stock price 10 days leading up to the earnings, and a +8.53% change 10 days following the report. On the earnings day itself, the stock moves by +0.20%. This data can give you a slight idea of what to expect for the next quarter's release.
ERIE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
999.89M
16.41%
0.95%
Gross Margin
18.01%
4.16%
-6.20%
Operating Margin
18.01%
4.16%
-6.20%
Net Margin
15.98%
4.72%
-3.44%
EPS
2.74
22.32%
-2.49%
No Data Available
ERIE Earnings Analysis
Erie Indemnity Co Corporation (ERIE.O) Earnings Conference Call
Positive
Net Income Increase: In the third quarter of 2024, Erie Indemnity Company generated net income of $160 million or $3.06 per diluted share compared to $131 million or $2.51 per diluted share in the third quarter of 2023.
Net Income Increase: For the first nine months of 2024, net income was $448 million or $8.57 per diluted share compared to $335 million or $6.41 per diluted share for the same period in 2023.
Operating Income Surge: Operating income increased 21% or $32 million in the third quarter of 2024 compared to the third quarter of 2023, while year-to-date operating income increased 29.5% or $116 million compared to the first nine months of 2023.
Management Fee Revenue Increase: The management fee revenue for policy issuance and renewal services increased $120 million or 18.5% in the third quarter of 2024 compared to the third quarter of 2023.
Indemnity Increase Analysis: For the first nine months of 2024, the indemnity saw an increase of $355 million or 19.3% compared to the same period of 2023, which aligns with the direct written premium growth of the Exchange in the similar periods.
Negative
Hurricane Impact on Combined Ratio: The combined ratio for Erie Insurance Exchange was impacted by Hurricane Helene, contributing 5.3 points to the third quarter 2024 combined ratio of 113.7 and 1.9 points to the Exchange's year-to-date combined ratio of 112.
Premium Growth and Profitability Pressure: The Exchange's direct and affiliated assumed written premiums grew over 18% for the quarter and just over 19% year-to-date when compared with the prior period of 2023, indicating significant pressure on profitability due to increased loss costs.
Operational Cost Increase: The cost of operations for policy issuance and renewal services increased by $66 million or 18.7% in the third quarter and $202 million or 19.9% in the first nine months of 2024 compared to the same periods in 2023, reflecting rising operational expenses.
Rising Non-Commission Expenses: Non-commission expenses increased by $23 million or 13.8% in the third quarter of 2024 compared to 2023, driven by higher personnel costs and increased costs tied to production, including underwriting and policy processing expenses.
Premium Impact on Combined Ratio: The realized premium from rate increases can take up to 24 months to impact the combined ratio, indicating a lag in financial recovery from increased operational costs.
ERIE FAQs
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ERIE Earning Call Sentiment
Erie Indemnity Company (ERIE) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ERIE.O
-1.02%Positive
The earnings call summary indicates strong financial performance with significant increases in net and operating income, driven by premium growth. Despite challenges like Hurricane Helene and increased expenses, the company maintains strong policyholder retention and has a promising shareholder return plan. The Q&A section suggests optimism for future growth, though some responses were vague. The positive financial metrics and shareholder returns outweigh the potential negatives, suggesting a positive stock price movement in the absence of market cap data.
