RLI (NYSE:RLI) Posts Quarterly Earnings Results, Beats Expectations By $0.32 EPS

Key Points

• RLI reported quarterly EPS of $0.86, beating analyst expectations by $0.32, although revenue of $476.96 million fell short of the $533.51 million consensus estimate.
• The stock traded near $61.10, with a $5.61 billion market capitalization, while analysts maintained a broadly negative outlook: a consensus “Reduce” rating and a $62.00 target price.
• RLI declared a quarterly dividend of $0.18 per share, equivalent to $0.72 annually and a 1.2% yield, with a 15.13% payout ratio.

RLI (NYSE:RLI - Get Free Report) announced its quarterly earnings results on Monday. The insurance provider reported $0.86 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.54 by $0.32, FiscalAI reports. RLI had a return on equity of 17.61% and a net margin of 22.22%. The firm had revenue of $476.96 million for the quarter, compared to the consensus estimate of $533.51 million.

RLI Trading Up 0.0%

RLI stock traded up $0.03 during mid-day trading on Monday, hitting $61.10. The stock had a trading volume of 1,510,841 shares, compared to its average volume of 831,584. The firm has a market capitalization of $5.61 billion, a P/E ratio of 12.84 and a beta of 0.36. The firm's 50 day moving average is $60.56 and its 200 day moving average is $57.77. RLI has a one year low of $47.26 and a one year high of $67.12.

RLI Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Monday, August 31st were paid a dividend of $0.18 per share. The ex-dividend date was Monday, August 31st. This represents a $0.72 dividend on an annualized basis and a dividend yield of 1.2%. RLI's payout ratio is 15.13%.

Analyst Ratings Changes

A number of brokerages have commented on RLI. Jefferies Financial Group cut shares of RLI from a "hold" rating to an "underperform" rating and set a $53.00 target price for the company. in a report on Tuesday, August 25th. Wells Fargo & Company reaffirmed an "underweight" rating and issued a $51.00 target price (down from $57.00) on shares of RLI in a report on Monday, October 12th. Wall Street Zen upgraded RLI from a "sell" rating to a "hold" rating in a research report on Saturday, August 1st. Weiss Ratings raised RLI from a "hold (c-)" rating to a "hold (c)" rating in a report on Friday, August 28th. Finally, UBS Group set a $74.00 price target on RLI in a research report on Tuesday, July 28th. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus target price of $62.00.

About RLI

RLI Corp. is a specialty insurance company that underwrites a broad range of property and casualty insurance products for individuals, businesses and organizations. Its offerings include commercial casualty coverage, property insurance, surety bonds, transportation-related insurance, professional liability and personal umbrella policies.

The company serves specialty markets that may be underserved by standard insurance providers. RLI distributes its products through independent agents and brokers, with business conducted primarily throughout the United States and coverage available across many industries, professions and geographic regions.

RLI was founded in 1965 as Replacement Lens, Inc, initially providing replacement coverage for automobile windshield lenses before expanding into specialty insurance.

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