The company’s stock dropped 7.3% to $39.36 following the announcement, capping a difficult year in which the insurer has lost 19% of its valuation. The downturn reflects investor concern over a quarter that saw the firm pivot from a $28.3 million profit a year ago to a net loss of $23.4 million, or $1.06 per share.
In section Market Quotes
Employers Holdings Shares Slide on Quarterly Loss and Revenue Drop
Shares of Employers Holdings fell sharply late Friday after the Reno-based workers' compensation insurer reported a swing to a fourth-quarter loss and a significant decline in revenue, overshadowing an adjusted earnings beat.
Revenue Pressure and Adjusted Performance
Total revenue for the period fell to $170.5 million, down from $216.6 million in the fourth quarter of the previous year. Despite the top-line contraction and the net loss, the company’s operational results surpassed Wall Street projections when stripping out non-recurring items.Employers Holdings reported adjusted earnings of 66 cents per share, significantly higher than the 53 cents per share anticipated by analysts. This adjusted figure suggests that while one-time items weighed heavily on the bottom line, the core business maintained higher-than-expected profitability during the final months of the year.
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