Palomar Holdings Inc (NASDAQ:PLMR) reported its second-quarter 2025 earnings, delivering a mixed performance relative to analyst expectations. The company’s adjusted earnings per share (EPS) of $1.76 surpassed the consensus estimate of $1.70, reflecting a 3.5% beat. However, revenue came in at $195.01 million, significantly below the projected $468.28 million, marking a substantial miss of 58.4%.
Key Takeaways from the Earnings Report
- Net Income Growth: Palomar reported net income of $46.5 million ($1.68 per diluted share), up sharply from $25.7 million ($1.00 per diluted share) in Q2 2024. Adjusted net income was $48.5 million ($1.76 per share), compared to $32.0 million ($1.25 per share) in the prior-year quarter.
- Revenue Shortfall: Despite strong profitability, the company’s revenue fell well short of expectations, raising questions about top-line growth.
- Market Reaction: Following the release, shares declined nearly 4% in after-hours trading, suggesting investor concern over the revenue miss despite the EPS beat.
Market Performance & Investor Sentiment
The immediate after-hours drop indicates that traders focused more on the revenue weakness than the earnings outperformance. Over the past month, Palomar’s stock has declined nearly 9.5%, while showing minimal movement in the last week. The broader reaction may also reflect uncertainty around future growth, particularly as analysts forecast Q3 2025 revenue at $563.4 million and full-year 2025 sales at $1.97 billion.
Looking Ahead
While Palomar did not provide explicit forward guidance in its press release, the discrepancy between its reported revenue and estimates suggests potential challenges in meeting full-year projections. The company’s ability to sustain profitability amid slower-than-expected sales growth will be a key focus in upcoming quarters.
For a deeper dive into Palomar’s earnings and analyst estimates, visit the earnings page.
Disclaimer: This article is for informational purposes only and does not constitute investment advice.
