How did SKWD's Q3 2024 earnings surprise analysts?

Skyward Specialty Insurance Group (SKWD) reported earnings per share (EPS) of $0.67 for Q3 2024, which exceeded analysts' expectations. Analysts had estimated an EPS of $0.67 for the quarter. This performance reflects the company's strong financial performance and operational efficiency, as evidenced by its net income of $36.67 million and total revenue of $300.89 million for the quarter. The revenue surprise, at 10.22 million, indicates that the actual revenue was significantly higher than anticipated. |code|Ticker|Name|Date|Revenue Surprise|EPS Surprise|market_code| |---|---|---|---|---|---|---| |SKWD|SKWD.O|Skyward Specialty|2023 Q4|-2.0678E7|0.04|185| |SKWD|SKWD.O|Skyward Specialty|2024 Q1|-1.5748E7|0.12|185| |SKWD|SKWD.O|Skyward Specialty|2024 Q2|1.805E7|0.18|185| |SKWD|SKWD.O|Skyward Specialty|2024 Q3|1.0218E7|0.06|185| The positive earnings surprise can be attributed to several factors, including: 1. **Strong Revenue Growth**: Skyward Specialty Insurance Group has experienced a significant increase in gross written premiums, which rose by 17.6% to $496.24 million compared to $421.99 million in Q2 2023. This growth in revenue contributes to the company's robust financial performance and surpassing earnings expectations. 2. **Efficient Underwriting**: The company's combined ratio improved to 90.7% in Q2 2024, indicating better underwriting performance and a lower ratio of expenses to revenue. This efficiency in underwriting contributes to higher profits and supports the company's earnings growth. In summary, Skyward Specialty Insurance Group's Q3 2024 earnings exceeded analysts' expectations due to strong revenue growth and efficient underwriting, reflecting the company's solid financial performance and strategic business decisions.