Lemonade tumbles 20% after soft rev guidance

LEMONADE

31/07/2024 17:39

** Lemonade Inc's  LMND.N  shares down 16.3% at $18.94 on
Weds after insurer's rev forecast disappoints
    ** LMND falls as much as 20.5% on the session to $17.98, a
three-week low 
    ** Co late Tues projected current qtr rev of $124-$126 mln,
below LSEG estimate of $134.3 mln
    ** For FY 2024, it sees rev of $511-$515 mln vs consensus of
$515.1 mln
    ** TD Cowen, which rates LMND "hold", said LMND's Q2 gross
loss ratio of 79% has not improved from 77% in Q4 2023, "which
may be a concern given significant rate increases earning in"
    ** For Q2, rev increased ~17% yr/yr to $122 mln and co
posted adj loss/sh of 81 cents. Both figures beat analysts'
expectations of $121.8 mln in rev and 88 cents/sh loss
    ** Avg rating among 10 analysts covering LMND is "hold" and
breakdown is 1 "buy", 6 "hold", 2 "sell" and 1 "strong sell" -
LSEG
    ** Median PT of $17.50 unchanged from May 30
    ** With decline on Weds, LMND up ~17% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))