Experts Estimate Trean Insurance (TIG) to Report Decline in Earnings: What to Look for

The market expects Trean Insurance ( TIG ) to report a year-over-year decline in earnings when it reports results for the quarter that ended June 2022. These common sentiments are important for evaluating a company’s financial picture, but a powerful factor that can affect its nearest market value is how the actual results compare to these figures.

The earnings report, which is expected to be released on August 3, 2022, could help the stock move higher if these key numbers are better than expected. On the other hand, if they miss, the stock may go down.

Although the stability of the price changes itself and the expectations of future earnings will depend on the management’s discussion about the business performance, it is important to prevent the EPS surprise opportunity.

Zacks Consensus Estimate

The company is expected to post earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of -37.5%.

Revenue is expected to be $70.4 million, up 37.3% from the previous quarter.

Estimate Revisions Trend

The EPS estimate for the quarter was unchanged in the last 30 days. This is a snapshot of how analysts revised their initial estimates during this period.

Marketers should keep in mind that the information reviewed by each of the analysts may not always reflect a significant change.

Benefits Whisper

Estimates review the company’s earnings before they are released to provide business information during the period when the results are released. This information is at the core of our amazing forecasting model – the Zacks Company’s opinion ESP (Predicting Expected Surprises).

Zacks Earnings ESP compares the Average Estimate to the Zacks Consensus Estimate for the quarter; The Most Accurate Estimate is the latest version of the Zacks Consensus EPS estimate. The idea is that analysts who are reviewing their numbers before the money is released have more recent information, which may be more accurate than what they and other contributors to the consensus previously predicted.

Therefore, a positive or negative ESP calculation for Earnings ESP indicates the potential deviation of actual earnings from the consensus estimate. However, the predictive power of the model is important for good ESP readings only.

Positive earnings ESP predicts strong earnings, especially when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce surprisingly good about 70% of the timeand Zacks firm position increase the predictive power of Earnings ESP.

Please note that a negative Earnings ESP calculation does not necessarily indicate that you have missed out. Our research shows that it is difficult to predict the earnings beat with any credibility for stocks that have unquantified ESPs and/or a Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Changed for Trean Insurance?

For Trean Insurance, the consensus estimate is lower than the Zacks Consensus Estimate, indicating that analysts will soon change the company’s earnings. This has resulted in an Earnings ESP of -100%.

On the other hand, the stock has a Zacks Rank of #3.

Therefore, this combination makes it difficult to predict with certainty that Trean Insurance will beat the EPS estimate.

Does the Amazing Profit History Have Any Information?

Analysts often consider the extent to which a company has been able to match past commitments when calculating future earnings. Therefore, it is important to look at the amazing history in order to measure its attractiveness for the upcoming number.

For the last reported quarter, Trean Insurance was expected to post earnings of $0.16 per share while earnings of $0.16 were not surprising.

The company has failed to beat EPS estimates in the last four quarters.

Down Under

Profit margins or misses may not be the only basis for a stock going up or down. Many stocks can lose ground even if they earn a lot of money due to some factors that frustrate investors. Similarly, unexpected developments help several stocks to gain even though they are making money.

That said, betting on stocks that are expected to exceed expectations increases the chances of winning. That’s why it’s worth looking at a company’s Earnings ESP and Zacks Rank before quarterly releases. Make sure to use it ESP Filters for Access uncovering the best stocks to buy or sell before they say.

Trean Insurance doesn’t seem like a great money maker. However, investors should also pay attention to other factors when betting on this stock or stay away from earnings before it is released.

Expected Results of an Industry Player

Another stock from the Zacks Insurance – Multi line industry, Assurant (AIZ), is recently expected to post earnings of $3.21 per share for the quarter ended June 2022. This represents a year-over-year change of +7.4%. Revenue for the quarter is expected to be $2.66 billion, up 5% from the previous quarter.

Over the past 30 days, Assurant’s EPS estimate has not changed. However, the company now has an Earnings ESP of 2.34%, indicating a Very Positive Estimate.

ESPs Earnings This ESP, combined with a Zacks Rank #1 (Strong Buy), indicates that Assurant will beat EPS estimates. The company beat EPS estimates in each of the last four quarters.

Stay on top of upcoming announcements with a Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.