On July 17, Travelers Companies rose 3.46% in pre-market trading, trading at $350.0 USD/share, with turnover of $1.601 million.
The surge was driven by the company's Q2 earnings report that dramatically exceeded Wall Street expectations. Adjusted EPS came in at $10.04, beating the consensus estimate of $5.38 by 86.62% and representing a 54.22% year-over-year increase from $6.51 per share. Revenue reached $12.153 billion, surpassing the $11.346 billion estimate. This marks the second consecutive quarter of beats, following Q1 results that also topped forecasts.
Notably, the blowout results arrive amid a wave of recent analyst downgrades. In the days prior to earnings, Morgan Stanley downgraded the stock to Underweight with a $290 target, TD Cowen cut to Sell at $297, and BofA maintained Underperform at $283. The magnitude of the earnings surprise is likely to force a broad reassessment of sell-side models. JPMorgan had just raised its target to $341 on July 16, while Truist initiated coverage at Buy with a $395 target on July 10.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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