Digital auto insurance company Root (NASDAQ: ROOT) will be announcing earnings results this Wednesday after market close. Here’s what investors should know.
Root beat analysts’ revenue expectations by 7.5% last quarter, reporting revenues of $382.9 million, up 32.4% year on year. It was an incredible quarter for the company, with a 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 for active Edge members.
This quarter, analysts are expecting Root’s revenue to grow 21.4% year on year to $371.2 million, slowing from the 165% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.47 per share.
Analysts covering the company have generally 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 21.7% on average.
Looking at Root’s peers in the property & casualty insurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Stewart Information Services delivered year-on-year revenue growth of 19.1%, beating analysts’ expectations by 30.8%, and Skyward Specialty Insurance reported revenues up 27.1%, topping estimates by 14.3%. Stewart Information Services traded down 4.1% following the results while Skyward Specialty Insurance was up 1.4%.
Read our full analysis of Stewart Information Services’s results here and Skyward Specialty Insurance’s results here.
Debates over possible tariffs and corporate tax adjustments have raised questions about economic stability 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 4.7% on average over the last month. Root is down 3.2% during the same time and is heading into earnings with an average analyst price target of $124.40 (compared to the current share price of $80.57).
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