Progressive Earnings Preview: Analysts Expect Rising Revenue, Falling EPS

Progressive PGR releases its next round of earnings this Thursday, August 11, 2011. Here's Benzinga's essential guide to Progressive's second quarter earnings report.

Earnings and Revenue:

Analysts are looking ahead to a positive EPS of 35 cents/share and revenues of $3.86 billion. Investors will be keen to see how this quarter's numbers stack up against the year-ago quarter's positive EPS of 40 cents/share on revenues of $3.72 billion. We'll have to wait for Thursday to see if Progressive reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of Progressive were trading at $18.48 as of August 5, 2011. Shares are down 5.1% year to date. For a full 12 months, the return has declined by 8.8%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts for Progressive is a Hold. This rating has strengthened slightly over the past ninety days.

Competitors:

Wondering how Progressive compares to rivals in the same sector? Here are a few of the company's peers.

• Allstate ALL: Hold with a -$1.23 recent quarter EPS
• Horace Mann Educators HMN: Moderate Buy with a -$0.39 recent quarter EPS
• Infinity Property and Casualty IPCC: Hold with a $0.44 recent quarter EPS
• First Acceptance FAC: $0.00 recent quarter EPS

The insurance-property and casualty company's industry has seen price/earnings growth of 1.3% during the current fiscal year.

Finally, a description of the company's main areas of operation: Progressive is an insurance holding company that provides personal and commercial automobile insurance and other property-casualty insurance throughout the U.S.

Take Action:

Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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