Earnings Alerts

American Financial Group (AFG) Earnings: 2Q Core Operating EPS Exceeds Estimates Despite Profit Decline

  • American Financial’s core operating earnings per share (EPS) for Q2 surpassed expectations at $2.14, compared to an estimated $2.11.
  • Year-over-year, the core operating EPS decreased from $2.56 to $2.14.
  • The book value per share rose to $54.15 compared to $52.25 in the previous year, exceeding the estimate of $53.91.
  • The adjusted book value per share stood at $55.74, slightly down from $56.19 last year, but above the estimated $55.51.
  • Core operating profit fell by 17% year-over-year, totaling $48 million.
  • Analyst recommendations for the company include 1 buy, 5 holds, and 0 sells.

American Financial Group on Smartkarma

Independent analysts on Smartkarma, such as Baptista Research, are closely monitoring American Financial Group (AFG). Baptista Research‘s recent insights highlight key aspects influencing AFG’s performance and stock value. In a bullish tone, Baptista Research discusses the impact of AFG’s specialty property and casualty operations on long-term value creation. Despite mixed financial performance in the first quarter of 2025, including lower property and casualty insurance underwriting profit, Baptista Research evaluates various factors that could shape AFG’s future price, conducting an independent valuation using a Discounted Cash Flow methodology.

Furthermore, Baptista Research emphasizes AFG’s capital management strategy as a significant factor in driving stock performance. Highlighting AFG’s solid financial performance in 2024, with core net operating earnings per share of $10.75 and a core operating return on equity of 19.3%, Baptista Research attributes these results to AFG’s diversified specialty insurance portfolio, effective capital management, and strategic investments. This favorable assessment underscores AFG’s resilience in overcoming industry challenges and outperforming peers, providing insightful analysis for investors on Smartkarma seeking a deeper understanding of American Financial Group‘s potential.


A look at American Financial Group Smart Scores

FactorScoreMagnitude
Value3
Dividend3
Growth3
Resilience3
Momentum3
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Based on the Smartkarma Smart Scores, American Financial Group shows a balanced outlook across various fundamental factors. With consistent scores of 3 in Value, Dividend, Growth, Resilience, and Momentum, the company appears to have a stable position in the market. American Financial Group, Inc. is known for providing multi-line property and casualty insurance, tax-deferred annuities, and various insurance products in the United States.

Given the neutral ratings across key metrics, American Financial Group‘s long-term outlook suggests a steady performance in the foreseeable future. The company’s focus on maintaining a moderate balance between value, growth, and resilience indicates a prudent approach in navigating the market challenges. Investors may find assurance in the consistent ratings across the different aspects of the company’s operations, signaling a reliable presence in the insurance sector.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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