Progressive's Earnings Outlook

Progressive PGR will be releasing its next round of earnings this Thursday, July 15. For all of the relevant information, here is your guide for Thursday's Q2 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on management's projections, Progressive analysts model for earnings of $1.08 per share on sales of $11.52 billion. In the same quarter last year, Progressive posted EPS of $1.84 on sales of $9.65 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Thursday, earnings would be down 41.3%. Revenue would be up 19.39% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Stock Performance

Over the last 52-week period, shares are up 12.74%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Progressive is scheduled to hold the call at 13:00:00 ET and can be accessed here.