Bowhead Beats on Q3 EPS but Revenue Misses as $34/Share Takeover Vote Looms
BOW sits 61% above its 52-week low of $21.21.
Summary
Bowhead posted Q3 adjusted EPS of $0.54, beating the $0.51 consensus, on revenue of $150.23 million that rose 17% year-over-year but fell short of the $170.01 million analysts expected. Net income was $12.94 million and gross written premiums grew 10.8% to $256.4 million, per the 8-K filed this morning. The quarter is largely academic for the stock: shareholders vote November 13 on American Family's $34-per-share all-cash acquisition, and the shares trade near that price at $34.15, just under the 52-week high. The revenue shortfall matters little against a fixed cash deal price, but it is a soft data point on the standalone franchise. Watch the November 13 shareholder vote as the gating event.
At the time of this announcement, BOW was trading at $34.15 on NYSE in the Finance sector, with a market capitalization of approximately $1.1B. The 52-week trading range was $21.21 to $35.07. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.