What to expect from Lemonade's (LMND) Q3 earnings

What happened

Lemonade, a digital insurance provider, is scheduled to report its third-quarter results this Thursday before the market opens. Analysts expect revenue to grow 66.4% year over year, compared with 42.4% growth in the same quarter last year.

Confirmed

Global impact / market context

Revenue growth will show whether Lemonade is expanding its insurance business at the pace analysts expect. The results may also shape investor expectations for future sales and the resources needed to support growth, while the article gives no new forecast for profits or costs.

Analyst inference

Analysts have generally reconfirmed their Lemonade estimates over the past 30 days. In the same insurance segment, Assurant and Markel Group reported revenue growth of 9.7% and 5.7%, respectively, and both beat analysts’ expectations, offering limited comparison points ahead of Lemonade’s report.

Confirmed

What to watch

1. Check Lemonade’s reported revenue against the 66.4% year-over-year growth analysts expect; a shortfall could weaken confidence in its near-term sales trajectory. Analyst inference
2. Look for updates on net premiums earned, the insurance premiums recognized as revenue, since Lemonade beat analysts’ expectations for this measure last quarter. Analyst inference
3. Compare the results with the prior quarter, when revenue was $294.4 million, up 79.4% year over year, while earnings per share matched estimates. Confirmed

Evidence

• stockstory.org