Overview
US claims management firm's Q1 revenue fell 1% yr/yr
Adjusted EPS for Q1 missed analyst expectations
Company repurchased shares in Q1, after no buybacks in prior year
Outlook
Company says outsourced claims activity remains below historical levels due to benign weather
Crawford & Co sees a pipeline of opportunities and aims to capture additional market share
Company highlights resilience from non-weather businesses amid challenging claims environment
Result Drivers
LOWER WEATHER CLAIMS - U.S. Property & Casualty revenues fell due to continued decreases in weather-driven claims activity, attributed to an extended period of benign weather
INTERNATIONAL IMPROVEMENT - International Operations saw revenue and margin gains, driven by improved results in Canada, Australia, and Asia, partly offset by declines in the U.K. and Latin America
BROADSPIRE MIX SHIFT - Broadspire revenue grew on higher disability claims, but margins fell due to a shift in product mix and increased employee and wage costs
Company press release: ID:nBw2JHjrBa
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Adjusted EPS
Miss
$0.16
$0.21 (3 Analysts)
Q1 EPS
$0.10
Q1 Net Income
$4.90 mln
Analyst Coverage
The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the multiline insurance & brokers peer group is "buy."
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)