NASDAQ$ERIE

Erie Indemnity Company · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Erie Indemnity's net income decreased in Q2 2020 due to economic disruption from COVID-19, while investment results improved from Q1 2020.

Erie Indemnity Company reported a decrease in net income for the second quarter of 2020, with net income at $82.0 million, or $1.57 per diluted share, compared to $87.8 million, or $1.68 per diluted share, in the second quarter of 2019. The decrease is attributed to economic disruptions from the COVID-19 pandemic. However, investment results improved compared to the first quarter of 2020.

  • Net income decreased to $82.0 million, or $1.57 per diluted share, in Q2 2020 from $87.8 million, or $1.68 per diluted share, in Q2 2019.
  • The Exchange experienced declines in new business due to business disruptions and recessionary conditions impacting management fee revenue.
  • Financial markets partially recovered in the second quarter of 2020, improving investment results.
  • Operating income before taxes decreased by $5.4 million, or 5.6 percent, in Q2 2020 compared to Q2 2019.

Headline financials

Total Revenue

$657M

Previous: $648M+1.4%
EPS (adj)

$1.57

Previous: $1.68-6.5%
Free Cash Flow

$82M

Previous: $87.8M-6.6%
Net Income

$82M

Previous: $87.8M-6.6%
Operating Income

$91.2M

Previous: $96.6M-5.6%
Gross Profit

$7.37M

Previous: $8.03M-8.2%
Total Assets

$2.08B

Previous: $1.89B+10.2%

Revenue & EPS history

Erie Insurance · Revenue · Quarterly

$657M

Q2 2020+1.4%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Erie Insurance · $572M total across 2 segments · Q1 2023

  • Policy Issuance & Renewal
    $556M
  • Administrative Services
    $15.7M

Forward guidance

Forward-looking statements are subject to risks and uncertainties, including the potential impacts of the COVID-19 pandemic on the Exchange's growth and financial condition, dependence on relationships with the Exchange, and factors affecting the quality and liquidity of investment portfolios.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.3%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+1.5%

Avg return

30 days after

48%

31 / 64 earnings

Positive

+11.4%

Q4 2023

Best reaction

-11.7%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.4%-8.0%-10.4%
Q4 2025-0.8%+2.1%-7.8%
Q3 2025-7.8%-6.9%-4.6%
Q1 2025-11.5%-12.3%-14.7%
Q4 2024+5.7%+10.4%+1.4%
Q3 2024-7.8%-9.2%-2.1%
Q2 2024+9.9%+15.4%+27.6%
Q1 2024-0.2%+0.0%+1.6%
Q4 2023+11.4%+15.7%+16.8%
Q3 2023-7.2%-6.2%-0.5%
Q2 2023+4.3%+4.9%+33.8%
Q1 2023-0.4%+4.3%+0.4%
Q4 2022-1.3%+1.9%-1.6%
Q3 2022+5.7%+8.1%+14.0%
Q2 2022+4.6%+7.3%+12.0%
Q1 2022-4.6%-0.7%-0.5%
Q4 2021+1.4%-2.7%+1.8%
Q3 2021+3.9%+7.3%+5.6%
Q2 2021+0.1%-0.3%-5.3%
Q1 2021-2.8%-3.5%-8.7%
Q4 2020-0.8%-0.4%-8.7%
Q3 2020-0.8%+2.4%-3.5%
Q2 2020+0.1%+1.7%-1.2%
Q1 2020-7.5%-6.5%+1.6%
Q4 2019-10.2%-4.3%+2.4%
Q3 2019+1.1%+1.8%-5.7%
Q2 2019-11.7%-15.6%-19.5%
Q1 2019+5.2%+4.8%+13.3%
Q4 2018+5.6%+10.2%+5.0%
Q3 2018+5.0%+5.9%+7.2%
Q2 2018+2.8%+3.4%+5.8%
Q1 2018-1.5%-1.4%-3.9%
Q4 2017-1.6%-1.0%-1.1%
Q3 2017+2.3%-0.3%+1.0%
Q2 2017+3.9%+3.6%-2.4%
Q1 2017-2.3%-4.0%-4.9%
Q4 2016+2.3%+1.2%+3.7%
Q3 2016-0.6%+1.0%+6.9%
Q2 2016-0.3%+1.6%+2.9%
Q1 2016+1.4%
Q4 2015-5.8%
Q3 2015-0.8%
Q2 2015+5.5%
Q1 2015-4.3%
Q4 2014-5.2%
Q3 2014+1.3%
Q2 2014+1.3%
Q1 2014+4.5%
Q4 2013+3.0%
Q3 2013-2.1%
Q2 2013-1.5%
Q1 2013+0.5%
Q4 2012+0.1%
Q3 2012+6.3%
Q2 2012-6.4%
Q1 2012-9.1%
Q4 2011-1.3%
Q3 2011+0.1%
Q2 2011-2.6%
Q1 2011-0.0%
Q4 2010+1.2%
Q3 2010+3.4%
Q2 2010+0.6%
Q1 2010-4.9%

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