Fairfax Financial (OTCMKTS:FRFHF) Issues Quarterly Earnings Results, Misses Estimates By $12.86 EPS

Key Points

• Fairfax Financial reported quarterly EPS of $31.11, missing the consensus estimate of $43.97 by $12.86.
• The stock traded up to $1,727.26 despite the miss, with a market capitalization of $37.15 billion and a low P/E of 8.07, and the company showed a return on equity of 16.29% and a net margin of 15.10%.
• Analyst sentiment is mixed: Zacks and BMO recently downgraded the stock to "hold" while Scotiabank reiterated an "outperform," leaving an overall MarketBeat average rating of "Moderate Buy" (three Buy, three Hold).

Fairfax Financial (OTCMKTS:FRFHF - Get Free Report) announced its earnings results on Thursday. The financial services provider reported $31.11 earnings per share for the quarter, missing the consensus estimate of $43.97 by ($12.86), Zacks reports. Fairfax Financial had a return on equity of 16.29% and a net margin of 15.10%.

Fairfax Financial Stock Performance

Fairfax Financial stock traded up $15.05 during trading hours on Thursday, hitting $1,727.26. 2,851 shares of the stock traded hands, compared to its average volume of 9,455. The company has a debt-to-equity ratio of 0.45, a current ratio of 3.78 and a quick ratio of 3.78. The firm's 50 day moving average price is $1,717.84 and its 200-day moving average price is $1,725.04. The stock has a market capitalization of $37.15 billion, a price-to-earnings ratio of 8.07 and a beta of 0.58. Fairfax Financial has a 1 year low of $1,528.10 and a 1 year high of $1,949.00.

Wall Street Analyst Weigh In

FRFHF has been the topic of several research analyst reports. Zacks Research downgraded Fairfax Financial from a "strong-buy" rating to a "hold" rating in a research note on Friday, January 30th. BMO Capital Markets downgraded Fairfax Financial from an "outperform" rating to a "hold" rating in a research note on Wednesday, January 21st. Finally, Scotiabank reiterated an "outperform" rating on shares of Fairfax Financial in a research note on Friday, January 30th. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, Fairfax Financial has an average rating of "Moderate Buy".

Fairfax Financial Company Profile

Fairfax Financial OTCMKTS: FRFHF is a Toronto-based financial holding company primarily engaged in property and casualty insurance, reinsurance and investment management. The company underwrites a broad range of commercial and personal insurance products, operates specialty and run-off reinsurance businesses, and manages a diversified investment portfolio largely funded by insurance float. Fairfax conducts its insurance operations through a network of subsidiaries and affiliated companies that provide local underwriting and claims services across multiple markets.

On the insurance side, Fairfax writes a mix of short-tail and long-tail coverages across specialty lines, commercial casualty, property and other niche markets, while its reinsurance activities include treaty and facultative solutions for cedants and intermediaries.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.