Goosehead Insurance (GSHD) Q2 Earnings Lag Estimates

GOosehead Insurance (GSHD) posted earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.13 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents a surprise profit margin of -5.88%. Last quarter, we expected this insurance company to post earnings of $0.01 per share while it earned $0.04 per share, a surprise of 300%.

For the past four quarters, the company has exceeded EPS estimates twice.

Goosehead, which belongs to the Zacks Insurance – Multi line industry, posted revenue of $53.02 million for the quarter ended June 2022, exceeding the Zacks Consensus Estimate by 4.41%. This compares to last year’s revenue of $38.17 million. The company has increased its revenue three times over the past four years.

The volatility of the stock price based on recently released numbers and future earnings expectations will depend on management’s comments on the earnings call.

Goosehead shares have lost about 61.7% since the start of the year versus the S&P 500’s -17.7% decline.

What’s next for Goosehead?

Although Goosehead has underperformed the market so far this year, the question that comes to the mind of investors is: what’s next?

There are no easy answers to this important question, but one reliable way to help investors deal with this is the company’s financial performance. Not only does this include earnings expectations for the upcoming quarter, but also how these expectations have changed recently.

Empirical research shows a strong correlation between the management of near-term assets and the performance of reassessing earnings estimates. Investors can track such changes on their own or rely on a benchmarking and benchmarking tool like Zacks Rank, which has an impressive track record of leveraging the power of earnings reviews.

Ahead of this release of benefits, speculations that occur in Goosehead: unpleasant. Although the size and rating may change following the latest financial report, the company’s current position translates into a Zacks Rank #4 (Sell) for the stock. Therefore, the shares are expected to fall in the market soon. You can see a complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how the estimates for the coming quarter and the current fiscal year change in the coming days. The current EPS estimate is $0.23 on $55.97 million in revenue for the upcoming quarter and $0.67 on $206.15 million in revenue for this year.

Marketers should remember that the appearance of the product can have a material effect on the performance of the product. In terms of Zacks Industry Rank, Insurance – Multi line currently ranks in the top 36% of the 250 industries including Zacks. Our research shows that the top 50% of industries covered by Zacks outperform the bottom 50% by a factor of 2 to 1.

Old Republic International (ORI), another stock in the same industry, did not report the results for the quarter ended June 2022. The results are expected to be released on July 28.

The insurer is expected to post earnings of $0.60 per share in its upcoming report, which represents a year-over-year change of -17.8%. The EPS estimate for the quarter was unchanged in the last 30 days.

Old Republic International’s revenue is expected to be $2.01 billion, down 5.7% from the previous quarter.

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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.