Arch Capital Group 2Q Earnings Pregame Scorecard

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Arch Capital Group (NASDAQ:ACGL) has topped Wall Street expectations for the last five quarters, and it will try to keep that streak alive as it reports the latest earnings on Wednesday.

Expectations

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Analysts currently expect Arch Capital Group to come in with earnings of 82 cents per share on revenues of $757.7 million. Estimates range from earnings per share to earnings per share. Over the past three months, the average estimate has moved up from 78 cents.

Stock Movement

In terms of price changes, the stock's best recent streak was when it gained $2.86 per share between June 25, 2012 and July 3, 2012.

Company Fundamental Trends On the heels last quarter's revenue increase, the company is focused on getting back on track after snapping a string of quarters spend in the red. Before climbing in the first quarter, revenue had decreased 0.1% in the second quarter of the last fiscal year, 4.1% in the third quarter of the last fiscal year and 9.4% in the fourth quarter of the last fiscal year. Net income has improved by a year-over-year average of more than twofold over the previous four quarters, and the company heads into its upcoming earnings announcement with solid profits of late.

Stock Ratings

Analysts are split on Arch Capital Group, but seven of 16 analysts rate it hold. Analyst sentiment has been waning recently, as the average rating has dropped slightly over the past three months.

Last Quarter's Results

In the first quarter, profit rose more than sixfold to $164.3 million ($1.14 a share) from $25.8 million (14 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 5.2% to $815 million from $775.1 million.

Summary

Reporting Period: 2Q

Date of Release: Wednesday, July 25, 2012

EPS: 82 cents

Revenue Estimate: $757.7 million

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)