A Preview Of Root's Earnings

Root (NASDAQ:ROOT) is gearing up to announce its quarterly earnings on Wednesday, 2025-05-07. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Root will report an earnings per share (EPS) of $0.03.

Anticipation surrounds Root's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings History Snapshot

The company's EPS beat by $2.00 in the last quarter, leading to a 25.57% increase in the share price on the following day.

Here's a look at Root's past performance and the resulting price change:

Quarter	Q1 2025	Q4 2024	Q3 2024	Q2 2024
EPS Estimate	0.03	-0.38	-0.98	-0.71
EPS Actual	1.07	1.62	1.35	-0.52
Price Change %	1.0%	26.0%	69.0%	-20.0%

Performance of Root Shares

Shares of Root were trading at $154.57 as of June 11. Over the last 52-week period, shares are up 267.97%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Root

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Root.

Analysts have provided Root with 5 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $143.4, suggesting a potential 7.23% downside.

Comparing Ratings with Competitors

This comparison focuses on the analyst ratings and average 1-year price targets of and Trupanion, three major players in the industry, shedding light on their relative performance expectations and market positioning.

Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for and Trupanion, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Trupanion	Buy	11.71%	$51.10M	-0.45%

Key Takeaway:

Root is positioned in the middle among its peers for consensus rating. It ranks at the bottom for revenue growth, with a growth rate of 11.71%. In terms of gross profit, Root is at the top with $51.10M. However, it has the lowest return on equity at -0.45%.

Discovering Root: A Closer Look

Root Inc develops and launches a direct-to-consumer personal automobile insurance and mobile technology company. It generates revenue from the sales of auto insurance policies within the United States.

Root: Delving into Financials

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Root's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 37.07%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Financials sector.

Net Margin: Root's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 5.27%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Root's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.51%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Root's ROA excels beyond industry benchmarks, reaching 1.19%. This signifies efficient management of assets and strong financial health.

Debt Management: Root's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.87, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Root visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.