The sizable EPS miss versus consensus, driven by higher expenses and flat premium growth, is likely to cause near-term selling pressure. However, the improved combined ratio, strong book value growth, and new $50M buyback may limit downside. Monitor the May 8 conference call for any forward guidance that could reassess the outlook.
Price Chart
Executive Summary
Heritage Insurance reported Q1 2026 EPS of $1.19, missing consensus of $1.53 by 22%, on revenue of $212.7M (1.3% below estimates). Despite YoY net income growth of 20% and an improved combined ratio of 81%, the significant earnings miss relative to elevated post-Q4 expectations will likely pressure shares near term.
Key Financial Metrics
Key Facts
- Q1 2026 EPS $1.19 (diluted) vs consensus $1.53, a 22.2% miss
- Total revenue $212.7M, up 0.5% YoY but 1.3% below consensus
- Net income $36.5M, up 19.7% YoY; net combined ratio improved to 81.0% from 84.5%
- Book value per share $17.15, up 4.6% from year-end 2025 and 61.5% YoY
- New $50M share repurchase plan authorized, replacing prior $25M plan (effective through 2026)
- Net premiums earned essentially flat at $199.7M; gross premiums written down 2.6% YoY
Financial Impact
EPS miss of $0.34 vs consensus; no guidance change
Risk Factors
- Persistent elevated weather losses and catastrophe exposure
- Increasing expense ratio (35.2% vs 34.8% prior year) from human capital costs
- Flat net premiums earned indicate limited top-line growth
- Interest rate sensitivity impacting investment portfolio and book value
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-212120 |
| Document: hrtg-20260507.htm | 0001193125-26-212120 |
| Document: 0001193125-26-212120-index-headers.html | 0001193125-26-212120 |
| Document: 0001193125-26-212120-index.html | 0001193125-26-212120 |
| Document: 0001193125-26-212120.txt | 0001193125-26-212120 |
| 8-K Data (Synthetic) | 0001193125-26-212120 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 8d ago | 144 | $36.98 $37.08 | ▲ +0.27% | ▼ −0.25% | $36.21 (−2.08%) |
Oct 19, 2026 8d ago | Press Release | $36.98 | awaiting T+1 | — | $36.21 (−2.08%) |
Sep 25, 2026 4w ago | SC 13G/A | $33.26 $33.49 | ▲ +0.69% | ▲ +0.88% | $36.21 (+8.87%) |
Sep 22, 2026 5w ago | Insider Cluster | $33.07 $33.18 | ▲ +0.33% | ▲ +0.41% | $36.21 (+9.50%) |
Sep 18, 2026 5w ago | 144 | $34.15 $33.50 | ▼ −1.90% | ▼ −1.89% | $36.21 (+6.03%) |
Sep 16, 2026 5w ago | Insider Cluster | $35.42 $34.42 | ▲ +2.82% | ▲ +2.70% | $36.21 (−2.23%) |
Sep 11, 2026 6w ago | Insider Cluster | $35.09 $34.78 | ▼ −0.88% | ▼ −0.42% | $36.21 (+3.19%) |
Sep 8, 2026 7w ago | Insider Cluster | $34.05 $34.53 | ▼ −1.41% | ▼ −2.01% | $36.21 (−6.34%) |
Aug 26, 2026 8w ago | Insider Cluster | $34.15 $33.86 | ▲ +0.85% | ▲ +0.62% | $36.21 (−6.03%) |
Aug 21, 2026 9w ago | Insider Cluster | $34.59 $34.20 | ▼ −1.13% | ▼ −1.45% | $36.21 (+4.68%) |
US Market Status
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