The market expects Reinsurance Group (RGA) to post higher earnings this quarter than a year ago, thanks to higher revenue, according to Zacks.com. These consensus forecasts are crucial in assessing a company’s earnings picture. One factor that could impact its stock price in the near term is how well the results match estimates.

The earnings report is expected on August 1. That could help the stock rise if the numbers beat expectations – while a miss could send the stock lower.

Management’s discussion of business conditions during the earnings call will influence whether any immediate changes in pricing and future earnings expectations hold up. However, it’s also worth gauging the potential for a positive earnings surprise, according to Zacks.com.

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Zacks Consensus Estimates

The reinsurer is expected to report quarterly earnings of $4.94 per share in its next report, representing a year-over-year change of +12.3%. Meanwhile, revenue is expected to reach $4.92 billion, up 14.9% from the year-ago quarter.

Trend of Estimates Revisions

EPS estimates for the quarter have increased by 0.16% over the past 30 days. This shows how analysts have updated their forecasts over this time.

Investors should keep in mind that this aggregate change may not represent how each individual analyst would adjust their estimates.

Whisper Profits

Reviewing earnings estimates before a company announces its results can provide insight into current business conditions.

The Zacks Earnings ESP compares the most accurate estimate to the Zacks Consensus Estimate for the quarter. It is an update to the consensus estimate that reflects the most recent information from analysts. This is done because analysts who update their estimates closer to the earnings release may have more recent insights.

A positive or negative earnings ESP reading indicates how much actual earnings differ from consensus estimates.

A positive Earnings ESP is likely to indicate a strong probability of earnings beating, especially when paired with a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 (Hold). Research shows that stocks with this combination experience a positive surprise about 70% of the time. A strong Zacks Rank increases the predictive power of the Earnings ESP.

Meanwhile, a negative ESP does not guarantee that earnings will not be achieved. It is difficult to predict earnings overshoot with any degree of confidence for stocks with negative ESP readings and/or a Zacks Rank of 4 (Sell) or 5 (Strong Sell).

Reinsurance Group

The most accurate estimate provided by Reinsurance Group is higher than the Zacks Consensus Estimate. This indicates increased analyst optimism and an Earnings ESP of +2.81%. Combined with the Zacks Rank #1 (Strong Buy), this suggests that Reinsurance Group is likely to beat consensus EPS estimates.

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