Valued at a market cap of $15.8 billion, Erie Indemnity Company (ERIE) is a managing attorney-in-fact for the subscribers at the Erie Insurance Exchange. The Erie, Pennsylvania-based company handles sales, underwriting, policy issuance and renewal, agent compensation, advertising support, IT, claims handling, investment management, and customer support on behalf of the Exchange. It is expected to announce its fiscal Q2 earnings for 2025 on Thursday, Jul. 24.
Ahead of this event, analysts expect this insurance company to report a profit of $3.55 per share, up 13.4% from $3.13 per share in the year-ago quarter. The company has surpassed Wall Street’s earnings estimates in three of the last four quarters while missing on another occasion. In Q1, Erie Indemnity’s EPS of $2.65 fell short of the forecasted figure by 16.9%.
For fiscal 2025, analysts expect ERIE to report a profit of $12.62 per share, up 9.9% from $11.48 per share in fiscal 2024. Its EPS is expected to further grow 15.1% year-over-year to $14.53 in fiscal 2026.
Shares of ERIE have declined 5.1% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 13.4% return and the Financial Select Sector SPDR Fund’s (XLF) 28% uptick over the same time frame.
On Apr. 24, Erie Indemnity released its Q1 results, and its shares tumbled 11.5% in the following trading session. Due to a rise in its management fee revenue and investment income, the company’s overall revenue grew 12.3% year-over-year to $989.4 million. Meanwhile, its EPS of $2.65 improved 11.3% from the year-ago quarter but missed the consensus estimates by 16.9%. This earnings miss might have dampened investor confidence. Additionally, compared to the prior-year quarter, its total all lines retention trend also went down to 89.9%, further raising investor concerns.
Wall Street analysts are moderately optimistic about ERIE’s stock, with a "Moderate Buy" rating overall. Among two analysts covering the stock, one recommends a "Strong Buy," and one advises a “Hold” rating. As of writing, the company is trading above both its mean price and Street-high price target of $73.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
