KINS Earnings Prediction
The chart below shows how KINS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KINS sees a -3.20% change in stock price 10 days leading up to the earnings, and a +8.28% change 10 days following the report. On the earnings day itself, the stock moves by +0.05%. This data can give you a slight idea of what to expect for the next quarter's release.
KINS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
40.77M
19.09%
11.70%
Gross Margin
--
--
--
Operating Margin
25.22%
353.47%
37.21%
Net Margin
17.12%
265.73%
38.40%
EPS
0.55
266.67%
48.65%
No Data Available
KINS Earnings Analysis
Kingstone Companies, Inc. Corporation (KINS.O) Earnings Conference Call
Positive
Record Quarterly Income: 1. Record Income Achievement: Kingstone Companies reported the highest income in any quarter since its acquisition in 2009, with net income of $7 million or $0.61 per basic share for Q3 2024.
Premium Growth Surge: 2. Significant Premium Growth: Direct written premiums increased by 28.1% in Q3 2024, with core personal lines direct written premiums rising by 39.4% compared to the same quarter last year.
Operational Efficiency Improvement: 3. Improved Combined Ratio: The company achieved a combined ratio of 72% for the quarter, an improvement of 38.2 points from the previous year, indicating enhanced operational efficiency.
High Return on Equity: 4. Strong Return on Equity: Kingstone reported an annualized return on equity of 55.6% for the quarter, reflecting robust profitability and effective capital management.
Investment Income Surge: 5. Increased Investment Income: Investment income rose by 14% to $1.7 million in Q3 2024, driven by strategic shifts in the investment portfolio to capitalize on higher yields.
Negative
Non-Core Business Decline: 1. Significant Reduction in Non-Core Business: Non-core business premiums decreased by 60% compared to the same period last year, indicating a substantial loss in this segment.
Rising Expense Ratio: 2. Increased Expense Ratio: The expense ratio rose to 33%, which is 1.2 points higher than the prior year quarter, primarily due to increased employee bonuses and contingent commissions.
Debt Liquidity Risk: 3. High Debt Levels: The holding company has $10 million of debt outstanding, which poses a liquidity risk as it historically relied on dividends from the insurance company for cash flow.
Shareholder Dilution Concerns: 4. Potential for Shareholder Dilution: The company sold almost 1.1 million shares via an at-the-market offering at an average price of $8.48, raising concerns about potential dilution for existing shareholders.
Increased Reinsurance Costs: 5. Guidance Reflects Increased Reinsurance Costs: The updated guidance for 2025 anticipates higher catastrophe reinsurance costs due to market hardening, which could negatively impact profitability.
KINS FAQs
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KINS Earning Call Sentiment
Kingstone Companies, Inc. (KINS) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
KINS.O
-7.2%Positive
The earnings call summary reflects strong financial performance with a net income turnaround, significant EPS improvement, and robust premium growth. Despite concerns about reinsurance costs and economic factors, the Q&A section reveals management's confidence in managing growth and competitive pricing. The company's strategic debt repayment and high ROE are positive indicators. While the expense ratio increased, it was due to positive underwriting results. Overall, the positive financial metrics and optimistic guidance outweigh potential risks, suggesting a positive stock price movement in the next two weeks.
