Lemonade to Release Earnings Results This Wednesday

NEW YORK, NY — Digital insurance provider Lemonade (NYSE:LMND) will announce its earnings results this Wednesday morning. The company has garnered attention as it exceeded analysts’ revenue expectations last quarter, reporting revenues of $164.1 million, a 34.5% increase from the previous year.

While Lemonade performed well in terms of revenue, it missed analysts’ estimates for net premiums earned. Its earnings per share (EPS) matched analysts’ expectations, demonstrating a mixed quarter for the company.

Analysts predict Lemonade’s revenue will grow 35.8% year on year this quarter, reaching $185.5 million. This marks an improvement from a 19.3% growth reported in the same period last year. The adjusted loss is anticipated to be $0.71 per share.

In the last month, analysts have reaffirmed their estimates for Lemonade, suggesting confidence in the company’s upcoming performance. Lemonade has a track record of surpassing Wall Street’s revenue expectations, averaging a 4.2% beat over the past two years.

Looking at the property and casualty insurance sector, peers like Stewart Information Services and Skyward Specialty Insurance have already reported their third-quarter results. Stewart saw a year-on-year revenue growth of 19.1%, while Skyward reported an increase of 27.1%. Despite the optimism from these reports, both companies experienced varied market reactions following their announcements.

The outlook for Lemonade heading into 2025 remains uncertain, influenced by potential trade policy changes and discussions surrounding corporate taxes. In a challenging market, property and casualty insurance stocks have generally underperformed, with share prices declining by 4.7% on average over the past month. However, Lemonade’s stock has risen 9.4%, and analysts have set an average price target of $45.88, compared to its current share price of $61.35.

As financial markets monitor these developments, investors will be keen to see how Lemonade’s performance unfolds in the upcoming earnings report.