HRTG Earnings Prediction
The chart below shows how HRTG performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HRTG sees a +0.69% change in stock price 10 days leading up to the earnings, and a +21.89% change 10 days following the report. On the earnings day itself, the stock moves by -1.28%. This data can give you a slight idea of what to expect for the next quarter's release.
HRTG Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
211.85M
13.71%
4.07%
Gross Margin
--
--
--
Operating Margin
5.55%
209.68%
-59.13%
Net Margin
3.85%
196.73%
-58.47%
EPS
0.27
196.43%
-55.74%
No Data Available
HRTG Earnings Analysis
HERITAGE INSURANCE HOLDINGS INC Corporation (HRTG.N) Earnings Conference Call
Positive
Net Income Improvement: We reported net income of $8.2 million, or $0.27 per diluted share, compared to a net loss of $7.4 million, or a loss of $0.28 per diluted share in the prior year quarter.
Net Income Improvement Factors: The increase in net income was driven by the positive impact of our rate actions, our underwriting actions, and our targeted exposure management taken over the last several years, which continue to favorably impact our results.
Quarterly Revenue Increase: Total revenues for the quarter were $211.9 million, up 13.7% from $186.3 million in the prior year quarter.
Premiums Earned Increase: Gross premiums earned rose to $354.2 million, up 5.1% from $337 million in the prior year quarter, reflecting our strategic focus on rate adequacy and organic growth in our commercial residential line.
Net Premiums Earned Growth: Net premiums earned increased to $198.8 million, up 12.6% from $176.6 million in the prior year quarter, as the growing gross premiums earned outpaced the increase in ceded premiums.
Negative
Hurricane Losses Impact: Our current quarter results include approximately $48 million of hurricane losses from Debbi and Helene.
Retention Loss Impact: We incurred a full $40 million retention loss and reported a net loss in the quarter of $48 million.
Hurricane Impact Losses: We experienced hurricanes Debbi and Helene during the third quarter with a combined loss of $48.7 million, with Debbi being a much smaller storm.
Hurricane Milton Loss Projections: We expect gross losses from Hurricane Milton to possibly reach into the third layer of our reinsurance tower, which starts at $450 million and goes to $914 million.
Net Loss Ratio Improvement: The net loss ratio for the quarter improved to 65.4%, an improvement of nine points from the 74.4% in the same quarter last year, reflecting higher net premiums earned coupled with slightly lower net losses in LAE.
HRTG FAQs
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HRTG Earning Call Sentiment
Heritage Insurance Holdings, Inc. (HRTG) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
HRTG.N
1.19%Positive
The earnings call summary shows strong financial performance with significant improvements in net income and revenue. The company's strategic initiatives and market strategy are promising, especially with the growth in E&S business and controlled growth strategy. However, the suspension of dividends and potential risks from hurricane losses and economic factors are concerns. The Q&A section reveals optimism for future rate momentum and attractive geographies, although some management responses lack clarity. Overall, the positive financial results and optimistic guidance outweigh the risks, leading to a positive stock price prediction over the next two weeks.