Auto insurance provider Mercury General (NYSE:MCY) will be reporting results this Tuesday after market close. Here’s what to expect.
Mercury General beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $1.48 billion, up 13.2% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ net premiums earned estimates.
Is Mercury General a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Mercury General’s revenue to decline 1.7% year on year to $1.49 billion, a reversal from the 41.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mercury General has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 2.1% on average.
Looking at Mercury General’s peers in the property & casualty insurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Stewart Information Services delivered year-on-year revenue growth of 19.1%, beating analysts’ expectations by 30.8%, and Skyward Specialty Insurance reported revenues up 27.1%, topping estimates by 14.3%. Stewart Information Services traded down 4.1% following the results while Skyward Specialty Insurance was up 1.4%.
Read our full analysis of Stewart Information Services’s results here and Skyward Specialty Insurance’s results here.
Questions about potential tariffs and corporate tax changes have caused much volatility in 2025. While some of the property & casualty insurance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.9% on average over the last month. Mercury General is down 10.4% during the same time and is heading into earnings with an average analyst price target of $100 (compared to the current share price of $77.30).
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