NYSE$MCY

Mercury General Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported an increase in net premiums earned but a higher combined ratio compared to the same period last year.

Mercury General Corporation reported a net income of $31.7 million for the fourth quarter of 2019, a significant improvement compared to the net loss of $81.9 million in the fourth quarter of 2018. The combined ratio was 103.2%, and catastrophe losses net of reinsurance totaled $36 million.

  • Net income was $31.7 million, compared to a net loss of $81.9 million in Q4 2018.
  • Operating income was $11.9 million, compared to an operating loss of $14.6 million in Q4 2018.
  • Net premiums earned increased to $925.4 million from $868.2 million in Q4 2018.
  • The combined ratio was 103.2%, compared to 106.7% in Q4 2018.

Headline financials

Total Revenue

$988M

Previous: $817M+21.0%
EPS (adj)

$0.21

Previous: -$0.26+180.8%
Combined ratio

103.2%

Previous: 106.7%-3.3%
Catastrophe losses net of reinsurance

$36M

Previous: $43M-16.3%
Net Income

$31.7M

Previous: -$81.9M+138.7%
Operating Income

$11.9M

No prior period
Gross Profit

$3.7B

Previous: $3.14B+18.1%
Cash & Equivalents

$294M

Previous: $314M-6.3%
Total Assets

$5.89B

Previous: $5.43B+8.4%
Stock-Based Comp

$35K

Previous: $41K-14.6%

Revenue & EPS history

Mercury General · Revenue · Quarterly

$988M

Q4 2019+21%vs Q4 2018
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Mercury General · $963M total across 3 segments · Q4 2019

  • Net premiums earned
    $925M+6.6%
  • Net investment income
    $35.7M+13.8%
  • Other
    $1.84M-15.1%

Forward guidance

The Company provides forward-looking statements based on current expectations and beliefs, but actual results may differ due to various risks and uncertainties.

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 Q4 2019

Historical avgQ4 2019

-0.1%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.0%

Avg return

30 days after

46%

31 / 68 earnings

Positive

+23.8%

Q3 2023

Best reaction

-14.2%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%+1.3%+4.0%
Q4 2025-9.2%-12.9%-9.7%
Q3 2025+2.1%+7.8%+12.8%
Q1 2025-4.0%+2.6%+11.0%
Q4 2024+9.3%+9.4%+14.3%
Q3 2024+5.9%-3.3%+16.2%
Q2 2024+2.3%+0.9%+13.1%
Q1 2024+2.2%+3.0%+5.4%
Q4 2023+6.2%+25.6%+17.6%
Q3 2023+23.8%+20.1%+22.8%
Q2 2023-5.3%-5.1%-11.1%
Q1 2023-3.7%-2.8%-2.3%
Q4 2022-6.2%-0.4%-14.7%
Q3 2022+14.0%+26.8%+24.0%
Q2 2022-14.2%-21.2%-21.3%
Q1 2022+3.4%+1.3%-3.8%
Q4 2021+1.9%+4.9%+0.9%
Q3 2021+2.0%+0.1%-6.3%
Q2 2021-3.1%-1.8%-3.9%
Q1 2021+3.8%+4.8%-2.3%
Q4 2020+1.6%+2.8%+9.6%
Q3 2020-0.3%+1.2%+9.5%
Q2 2020+0.0%+6.2%+6.3%
Q1 2020-6.4%-9.7%+7.2%
Q4 2019+5.6%+5.8%-20.3%
Q3 2019-10.3%-8.9%-7.3%
Q2 2019-7.8%-9.6%-15.6%
Q1 2019+1.3%+6.0%+7.3%
Q4 2018-4.7%+0.7%-5.7%
Q3 2018+20.9%+18.6%+9.1%
Q2 2018+13.6%+15.4%+19.9%
Q1 2018-8.3%-8.3%-2.4%
Q4 2017-13.0%-12.0%-5.3%
Q3 2017-0.1%-1.0%-2.4%
Q2 2017+5.7%+6.1%+1.8%
Q1 2017-7.0%-7.9%-8.9%
Q4 2016-6.3%-9.3%-6.4%
Q3 2016+11.2%+8.7%+15.8%
Q2 2016-3.9%-4.9%-1.9%
Q1 2016-1.0%
Q4 2015+7.5%
Q3 2015-3.5%
Q2 2015-0.9%
Q1 2015-3.5%
Q4 2014-11.8%
Q3 2014+3.9%
Q2 2014+4.4%
Q1 2014+0.8%
Q4 2013-5.2%
Q3 2013-4.6%
Q2 2013-3.2%
Q1 2013+7.7%
Q4 2012-6.4%
Q3 2012+1.3%
Q2 2012-11.3%
Q1 2012+0.0%
Q4 2011-1.2%
Q3 2011+4.2%
Q2 2011-2.8%
Q1 2010-1.4%
Q1 2011+1.0%
Q4 2008-0.1%
Q4 2010-0.1%
Q3 2010+0.1%
Q3 2009+0.1%
Q2 2009-0.4%
Q2 2010-0.4%
Q4 2009-0.4%

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