Digital auto insurance company Root (NASDAQ: ROOT) will be reporting results this Wednesday after the bell. Here’s what to expect.
Root beat analysts’ revenue expectations by 9.1% last quarter, reporting revenues of $349.4 million, up 37.1% year on year. It was an incredible quarter for the company, with a solid beat of analysts’ EPS estimates and a solid beat of analysts’ net premiums earned estimates.
Is Root a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Root’s revenue to grow 23.1% year on year to $356.1 million, slowing from the 287% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Root has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 20.8% on average.
Looking at Root’s peers in the property & casualty insurance segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Mercury General delivered year-on-year revenue growth of 13.2%, beating analysts’ expectations by 2%, and Allstate reported revenues up 6%, falling short of estimates by 0.7%. Mercury General’s stock price was unchanged after the resultswhile Allstate was up 5.7%.
Read our full analysis of Mercury General’s results here and Allstate’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the property & casualty insurance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.9% on average over the last month. Root is up 2.2% during the same time and is heading into earnings with an average analyst price target of $145 (compared to the current share price of $122.35).
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