Mercury General Corp Up 19.62% To $36.94 After Earnings Beat

Wednesday, November 1, 2023 - Mercury General Corp (MCY) reported upside earnings and downside revenues.

Analyst expectations for Mercury General Corp earnings per share (EPS) were at $0.14, with the company surpassing those estimates with a reported EPS of $1.14, leading to a positive surprise of $1 per share (714%). Mercury General Corp's earnings rose 307% year-over-year as the firm reported an EPS of $0.28 in its year-ago quarter. The positive annual growth shows the Financial Services company is performing well amid recent economic conditions.

Revenues were downbeat at $1.1 billion. That is an increase of 18.30% in revenues from the year-ago report and is 4.05% lower than consensus estimates set at $1.1 billion.

The stock is up 19.62% to $36.94 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Prior to the report, InvestorsObserver gave the stock an overall score of 40. Meanwhile, the average Wall Street analyst rated the stock a Buy.

Mercury General Corp is an insurance holding company operating in the property-casualty market, where it focuses on low-cost auto insurance for individuals, with operations in nearly 13 United States of America states. However, its business--about 75% of premiums--comes from California, where it was established by George Joseph, the current company chairman and majority owner. Its insurance is distributed exclusively through independent agents.