Specialty insurance provider RLI (NYSE: RLI) will be reporting results this Monday after market hours. Here’s what to expect.
RLI beat analysts’ revenue expectations by 11.7% last quarter, reporting revenues of $499.8 million, up 20% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ revenue estimates but a significant miss of analysts’ book value per share estimates.
Is RLI a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting RLI’s revenue to decline 3.6% year on year to $453 million, a reversal from the 41.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.70 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. RLI has missed Wall Street’s revenue estimates three times over the last two years.
Looking at RLI’s peers in the insurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Travelers delivered year-on-year revenue growth of 5%, beating analysts’ expectations by 0.9%, and Progressive reported revenues up 14.2%, in line with consensus estimates. Travelers traded down 2.7% following the results while Progressive was also down 7.8%.
Read our full analysis of Travelers’s results here and Progressive’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the insurance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.3% on average over the last month. RLI is down 7.6% during the same time and is heading into earnings with an average analyst price target of $69.25 (compared to the current share price of $59.73).
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