Will Palomar Holdings Pull Off a Surprise This Earnings Season?

Palomar Holdings, Inc. PLMR is expected to register an improvement in its top and bottom lines when it reports second-quarter 2025 results on Aug. 4, after the closing bell.The Zacks Consensus Estimate for PLMR’s second-quarter revenues is pegged at $186.21 million, indicating a 42.1% increase from the year-ago reported figure.The consensus estimate for the bottom line is pegged at $1.68 per share. The estimate suggests a year-over-year increase of 34.4%. The Zacks Consensus Estimate for PLMR’s second-quarter earnings has moved south by 1.2% in the past 60 days.What the Zacks Model Unveils for PLMROur proven model predicts an earnings beat for PLMR this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) that increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Earnings ESP: PLMR has an Earnings ESP of +0.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Palomar Holdings, Inc. Price and EPS Surprise Palomar Holdings, Inc. price-eps-surprise | Palomar Holdings, Inc. QuoteZacks Rank: PLMR carries a Zacks Rank #3.Factors Likely to Shape PLMR’s Q2 ResultsPalomar’s second-quarter earnings are likely to have benefited from its fee-based revenue stream.Palomar’s premium in the to-be-reported quarter is likely to have benefited from increased volume of policies in the majority of lines of business, driven by new business generated with existing partners, strong premium retention rates for existing business, expansion of distribution footprint, as well as new partnerships. The company’s intensified focus on the crop business is likely to have aided its performance. The Zacks Consensus Estimate for premiums earned is pegged at $174 million. Our estimate is pegged at $172.4 million.Investment income is likely to have increased, driven by a higher average balance of investments, as well as higher yields on invested assets. The Zacks Consensus Estimate is pegged at $12.06 million. Our estimate is pegged at $9.6 million.A premium increase, higher net investment income, and commission and other income are expected to have driven total revenues in the to-be-reported quarter.The insurer has a reinsurance policy in place, which is likely to have limited its catastrophe loss, aiding improvement in the combined ratio. The Zacks Consensus Estimate for the combined ratio is pegged at 78. Our estimate is pegged at 78.9.Total expenses are likely to have increased due to higher losses and loss adjustment expenses, interest and acquisition expenses, and other underwriting expenses. Our estimate for total expense is $136.9 million. The loss ratio is likely to reflect rate increases and prudent underwriting. Our loss ratio estimate is pegged at 35.5. The company expects the expense ratio to be a little bit higher in the second quarter. Our expense ratio estimate is pegged at 43.4.Other Stocks to ConsiderHere are three other insurance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:American International Group, Inc. AIG has an Earnings ESP of +0.18% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.58 per share, indicating a year-over-year increase of 36.2%. AIG’s earnings beat estimates in three of the last four quarters while missing in one.Assurant, Inc. AIZ has an Earnings ESP of +1.99% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.43 per share, implying an increase of 8.5% from the year-ago reported figure.AIZ’s earnings beat estimates in each of the last four quarters.MarketAxess Holdings Inc. MKTX has an Earnings ESP of +0.95% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.94 per share, implying an increase of 12.7% from the year-ago reported figure.MKTX’s earnings beat estimates in each of the last four quarters.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report American International Group, Inc. (AIG): Free Stock Analysis Report Assurant, Inc. (AIZ): Free Stock Analysis Report MarketAxess Holdings Inc. (MKTX): Free Stock Analysis Report Palomar Holdings, Inc. (PLMR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks