Specialty insurance company Markel Group (NYSE:MKL) will be reporting results this Wednesday after market hours. Here’s what investors should know.
Markel Group beat analysts’ revenue expectations by 15.7% last quarter, reporting revenues of $4.60 billion, up 24.3% year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ revenue estimates but a slight miss of analysts’ book value per share estimates.
Is Markel Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Markel Group’s revenue to decline 15% year on year to $3.92 billion, a reversal from the 36.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $23.77 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Markel Group has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Markel Group’s peers in the property & casualty insurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Stewart Information Services delivered year-on-year revenue growth of 19.1%, beating analysts’ expectations by 30.8%, and First American Financial reported revenues up 40.7%, topping estimates by 6.2%. Stewart Information Services traded down 4.1% following the results while First American Financial was up 3.6%.
Read our full analysis of Stewart Information Services’s results here and First American Financial’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the property & casualty insurance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Markel Group’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $2,009 (compared to the current share price of $1,883).
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