HCI Group (NYSE:HCI) Issues Quarterly Earnings Results, Beats Expectations By $1.49 EPS

HCI Group (NYSE:HCI) posted its earnings results on Wednesday. The insurance provider reported $6.45 EPS for the quarter, topping the consensus estimate of $4.96 by $1.49, FiscalAI reports. The business had revenue of $244.91 million for the quarter, compared to the consensus estimate of $247.75 million. HCI Group had a net margin of 32.60% and a return on equity of 28.80%.

Here are the key takeaways from HCI Group’s conference call:

• Pre-tax income rose to $116 million from $91 million a year earlier, while diluted EPS increased to $6.45 from $4.90. Management attributed earnings growth outpacing premium growth to higher investment income, lower reinsurance costs and operating leverage.
• The balance sheet remained strong, with more than $2.1 billion in cash and investments, over $1 billion in stockholders’ equity and debt below 6% of capitalization. HCI said it repurchased 4% of its shares so far this year and reported book value per share above $90.
• Gross written premiums increased 12% year over year, led by CORE’s new residential business, which more than doubled from the prior quarter and reached about $8 million in monthly premiums. Management said the business is narrowing the gap to organic policy growth.
• Management expects insurance rates to decline somewhat in 2027, while describing the market as softer and competition for premiums as intense. Policy attrition has been steady at roughly 8% to 8.5% over the past year.
• Hurricane Isaias generated more than 1,300 claims, and HCI expects a $15 million net loss in the fourth quarter. The company said reinsurance limits its net exposure, but did not yet provide a gross-loss estimate.

HCI Group Stock Performance

HCI traded down $11.06 during trading on Thursday, hitting $191.47. 347,656 shares of the company traded hands, compared to its average volume of 169,235. The firm has a market cap of $2.38 billion, a P/E ratio of 8.23 and a beta of 0.96. The stock’s fifty day moving average is $190.15 and its 200 day moving average is $171.28. The company has a quick ratio of 0.69, a current ratio of 0.69 and a debt-to-equity ratio of 0.03. HCI Group has a one year low of $144.75 and a one year high of $208.80.

HCI Group Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, December 18th. Investors of record on Friday, November 20th will be issued a $0.40 dividend. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Friday, November 20th. HCI Group’s payout ratio is 6.90%.

Key HCI Group News

Here are the key news stories impacting HCI Group this week:

• Positive Sentiment: HCI earned $6.45 per diluted share, ahead of analysts’ roughly $5 estimates, while net income rose to $86 million from $68 million a year earlier. Gross written premiums increased 12%, and the gross loss ratio was 20.7%. HCI Group third-quarter results
• Positive Sentiment: Analysts raised their price targets: Citizens JMP moved its target to $280 and maintained a “market outperform” rating; Truist raised its target to $245 and reiterated “buy.” Citizens JMP price-target news Truist price-target news
• Negative Sentiment: Quarterly revenue of $244.91 million was modestly below the $247.75 million analyst estimate, tempering the earnings beat. HCI revenue and earnings report
• Negative Sentiment: Management outlined an estimated $15 million net loss from Hurricane Isaias for Q4, adding near-term claims uncertainty. HCI’s Isaias loss estimate

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the stock. Weiss Ratings lowered shares of HCI Group from a “buy (b)” rating to a “buy (b-)” rating in a report on Tuesday, August 11th. Citigroup reissued a “market outperform” rating on shares of HCI Group in a research report on Thursday. Cantor Fitzgerald started coverage on HCI Group in a research note on Thursday, July 9th. They issued an “overweight” rating and a $225.00 price objective on the stock. Zacks Research upgraded HCI Group from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 5th. Finally, Citizens Jmp lifted their target price on HCI Group from $265.00 to $280.00 and gave the stock a “market outperform” rating in a report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, HCI Group currently has a consensus rating of “Buy” and a consensus target price of $250.00.

About HCI Group

HCI Group, Inc is a Florida-based holding company focused primarily on property and casualty insurance. Through its insurance subsidiaries, the company provides residential property insurance products, including homeowners, condominium, renters and dwelling coverage, designed to protect policyholders against risks such as wind, fire, theft and other covered losses.

HCI’s insurance operations have historically been concentrated in Florida, one of the largest and most challenging residential property-insurance markets in the United States.