Expectations for HCI Group's (HCI) Fourth Quarter Profit and Sales Exceeded

HCI Group (HCI) exceeded the Zacks Consensus Estimate of $1.41 per share with quarterly earnings of $3.22. This compares to $0.06 per share last year. Adjusted for non-recurring items.

This quarter's profit surprise is 128.37%. Last quarter, this property and casualty insurance holding company was predicted to earn $0.36 per share, but it earned $1.41, a 291.67% surprise. The company outperformed consensus EPS projections four times in the last four quarters.

For the quarter ending December 2023, Zacks Insurance - Property and Casualty company HCI Group reported $162.67 million in revenues, 11.35% higher than the Zacks Consensus Estimate. Revenues were $119.94 million last year. The company has surpassed consensus revenue expectations four times in four quarters.

Management's earnings call commentary will determine whether the stock's quick price movement based on recently published figures and future earnings estimates will last. Compared to the S&P 500's 7% rise, HCI Group shares have gained 12.3% since January.

HCI Group has outperformed the market this year, but investors wonder what's ahead for the stock? The company's profits outlook can assist investors answer this important question, but there are no easy answers. This includes current consensus earnings predictions for the coming quarter(s) and their recent changes.

Near-term market fluctuations and earnings estimate revisions are strongly correlated, according to empirical studies. Investors can track earnings estimate revisions themselves or use the Zacks Rank, which has a proven track record of doing so.

Before this earnings announcement, HCI Group estimate revisions are unfavorable. After the company's earnings report, estimate revisions may alter, but the stock has a Zacks Rank #4 (Sell). Therefore, the shares are projected to underperform the market soon

It will be fascinating to observe how quarter and fiscal year estimates adjust. The consensus EPS forecast for the approaching quarter is $3.26 on $195.41 million in revenues and $7.44 on $693.03 million for the current fiscal year.

Investors should be aware that industry outlook can affect stock performance. Zacks ranks Insurance - Property and Casualty in the top 16% of 250+ industries. Our analysis reveals that the top 50% of Zacks-ranked sectors beat the bottom 50% by more than 2 to 1. Other industry stock Heritage Insurance (HRTG) has not reported results for the quarter ending December 2023. Results should be revealed on March 11.

This property and casualty insurance holding business is predicted to announce quarterly earnings of $0.45 per share, down 6.3% year-over-year. The quarter's consensus EPS estimate hasn't changed in 30 days. Heritage Insurance's quarterly revenue is predicted to rise 6% to $185.11 million.