ROOT Earnings Prediction
The chart below shows how ROOT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ROOT sees a +5.71% change in stock price 10 days leading up to the earnings, and a +46.11% change 10 days following the report. On the earnings day itself, the stock moves by -2.04%. This data can give you a slight idea of what to expect for the next quarter's release.
ROOT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
305.70M
165.13%
5.71%
Gross Margin
--
--
--
Operating Margin
10.73%
139.78%
640.00%
Net Margin
7.46%
118.78%
-376.30%
EPS
1.28
140.51%
-346.15%
No Data Available
ROOT Earnings Analysis
Root, Inc. Class A Common Stock Corporation (ROOT.O) Earnings Conference Call
Positive
Landmark Quarter Performance: Our third quarter performance was a landmark quarter for Root.
Net Income Improvement: We delivered it with a net income profit of $23 million, a $69 million improvement year-over-year.
Operating Income and EBITDA Growth: We generated an operating income of $34 million and adjusted EBITDA of $42 million, year-over-year improvements of $68 million and $61 million, respectively.
Net Earned Premium Growth: Our outstanding results continue to be driven primarily by growth in our net earned premium, closely managed expense base in the responsible deployment of marketing investment.
Premium Growth Metrics: We have seen significant increases in new writings, policies in-force, gross written premium and gross earned premium compared to the third quarter of 2023.
Negative
Net Income Improvement Challenges: In the third quarter of 2024, Root reported a net income of $23 million, which, despite being an improvement, reflects ongoing challenges in achieving consistent profitability.
Gross Loss Ratio Concern: The company experienced a gross loss ratio of 57%, indicating significant losses relative to premiums earned, which is a concern for future profitability.
Operating Cash Flow Analysis: Root's operating cash flow was nearly $50 million, primarily driven by net income, but the strong loss ratio performance raises questions about sustainability.
Facility Size Reduction: The company reduced the size of its facility from $300 million to $200 million, which may impact operational capacity and growth potential moving forward.
Underwriting Results Analysis: Root's underwriting results showed a 58% gross accident period loss ratio, which, while improved, still suggests underlying issues in risk management and claims handling.
ROOT FAQs
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ROOT Earning Call Sentiment
Root, Inc. (ROOT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
ROOT.O
-9.91%Positive
The earnings call highlights strong financial performance, profitability achievement, and strategic initiatives like geographic expansion and partnerships, which are positive indicators. The Q&A section supports this with plans for growth and improved retention rates. Although there is some uncertainty regarding future marketing investment, the overall sentiment is positive due to significant financial improvements and strategic growth plans.
