HCI Earnings Prediction
The chart below shows how HCI performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HCI sees a -2.59% change in stock price 10 days leading up to the earnings, and a +2.68% change 10 days following the report. On the earnings day itself, the stock moves by +0.86%. This data can give you a slight idea of what to expect for the next quarter's release.
HCI Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
174.66M
32.68%
-15.09%
Gross Margin
--
--
--
Operating Margin
9.64%
-44.63%
-74.88%
Net Margin
5.38%
-54.79%
-80.62%
EPS
0.52
-55.17%
-87.74%
No Data Available
HCI Earnings Analysis
HCI Group, Inc. Corporation (HCI.N) Earnings Conference Call
Positive
Earnings Resilience Amid Challenges: 1. Positive Earnings Performance: HCI Group reported a pretax income of $14 million and diluted earnings per share of $0.52 despite the impact of three hurricanes in the quarter.
Dividend Consistency: 2. Consistent Dividend Payments: The company declared a dividend of $0.40 per share, marking its 56th consecutive quarterly dividend, demonstrating a commitment to returning value to shareholders.
Policy Acquisition Success: 3. Successful Policy Assumption: HCI successfully added approximately 42,000 policies from Citizens ahead of schedule, exceeding its original target of 40,000 policies for the fourth quarter.
Strong Operational Efficiency: 4. Strong Underlying Profitability: The underlying loss ratio for the quarter was reported at just under 25%, with a low underlying combined ratio of 70%, indicating strong operational efficiency.
Balance Sheet Expansion: 5. Significant Balance Sheet Growth: Cash and investments increased by $490 million over the past 12 months, and shareholder equity has more than doubled, reflecting a robust financial position.
Negative
Hurricane Financial Impact: 1. Hurricane Losses: HCI Group incurred a net expense of $58 million from Hurricanes Debby and Helene in Q3 2024, significantly impacting financial results despite reporting a pretax income of $14 million.
Hurricane Milton Expenses: 2. Increased Expenses from Hurricane Milton: The expected net expense for Hurricane Milton is projected to total $128 million, which is higher than the losses from the previous hurricanes in Q3.
Ceded Premium Impact: 3. Ceded Premium Adjustments: The company anticipates a $50 million adjustment in ceded premium due to Hurricane Milton, which will affect the overall financial performance in Q4.
Margin Pressure Outlook: 4. Potential Margin Pressure: HCI's decision not to raise rates in Florida for 2025 may lead to slight pressure on margins, as indicated by management's acknowledgment of potential impacts on profitability.
Claims Management Challenges: 5. High Claims Count: The claims count for Hurricane Milton is expected to be between 1/2 to 2/3 the size of previous storms like Ian, indicating ongoing challenges in managing claims despite a larger policy base.
HCI FAQs
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HCI Earning Call Sentiment
HCI Group, Inc. (HCI) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
HCI.N
-0.34%Positive
The earnings call summary reveals positive developments: policyholder growth, a new carrier launch, and strong underlying profitability despite hurricane impacts. Financial health is robust, with improved leverage and liquidity. The Q&A section supports stability in loss ratios and competitive environment. However, hurricane-related losses and regulatory pressures are concerns. The commitment to dividends and stable rates in Florida further enhance sentiment. Overall, positive financial metrics and strategic initiatives outweigh risks, predicting a stock price increase of 2% to 8%.