Lemonade (LMND) reported $95.2 million in revenue for the quarter ended March 2023, representing a year-over-year increase of 114.9%. EPS of -$0.95 for the same period compares to -$1.21 a year ago.
The reported revenue represents a surprise of +7.72% over the Zacks Consensus Estimate of $88.38 million. With the consensus EPS estimate being -$1.14, the EPS surprise was +16.67%.
While investors closely watch year-over-year changes in headline numbers — revenue and earnings — and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company’s underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock’s price performance more accurately.
Here is how Lemonade performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- In force premium (end of period): $653.30 million versus the four-analyst average estimate of $637.24 million.
- Gross loss ratio: 87% versus the four-analyst average estimate of 88.38%.
- Net loss ratio: 93% versus the four-analyst average estimate of 90.58%.
- Customers (end of period): 1856012 versus 1852183 estimated by three analysts on average.
- Premium per Customer (end of period): $352 compared to the $345.27 average estimate based on three analysts.
- Net investment income: $5 million versus the four-analyst average estimate of $3.40 million. The reported number represents a year-over-year change of +455.6%.
- Ceding commission income: $17.20 million compared to the $18.41 million average estimate based on four analysts. The reported number represents a change of +22.9% year over year.
- Commission income: $4.80 million versus the four-analyst average estimate of $3.90 million. The reported number represents a year-over-year change of +140%.
- Net earned premium: $68.20 million versus the four-analyst average estimate of $62.70 million. The reported number represents a year-over-year change of +148.9%.
View all Key Company Metrics for Lemonade here>>>
Shares of Lemonade have returned -21.9% over the past month versus the Zacks S&P 500 composite’s +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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