Trupanion (NASDAQ:TRUP) Issues Quarterly Earnings Results

Trupanion (NASDAQ:TRUP) released its earnings results on Thursday. The financial services provider reported $0.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.16 by $0.05, FiscalAI reports. The firm had revenue of $405.59 million for the quarter, compared to analysts’ expectations of $402.53 million. Trupanion had a return on equity of 5.96% and a net margin of 1.53%.

Here are the key takeaways from Trupanion’s conference call:

• Trupanion reported record third-quarter adjusted operating income of $47 million, up 15% year over year, on revenue of $405.6 million, up 11%. Free cash flow also reached a record $28.5 million, and the company reported its sixth consecutive quarter of positive net income.
• Growth and customer metrics improved: net new pets exceeded 20,500, up more than 28% year over year, while average monthly retention rose for the seventh consecutive quarter to 98.38%. Management attributed stronger conversion and lower acquisition cost per pet in part to expanded plan options and digital enrollment improvements.
• The company raised the midpoint of its full-year adjusted operating income outlook to $180.5 million, implying about 19% year-over-year growth, and expects fourth-quarter adjusted operating income of $48 million to $51 million. Full-year subscription revenue is now expected to grow about 14% at the midpoint.
• Management expects veterinary cost inflation to remain in the double digits into 2027, requiring continued pricing adjustments. It said average member increases may ease as pricing catches up with costs, but affordability remains an important consideration.
• Trupanion repurchased about $25 million of shares in the quarter and repaid $15 million of borrowings after quarter-end, while continuing to fund growth initiatives. Its Landspath pet-food trials are underway, but management expects limited revenue from the initiative over the next 18 months.

Trupanion Stock Performance

Shares of TRUP traded up $1.05 during mid-day trading on Thursday, hitting $34.72. The stock had a trading volume of 733,923 shares, compared to its average volume of 437,702. The firm has a market cap of $1.52 billion, a P/E ratio of 65.51, a PEG ratio of 1.86 and a beta of 1.27. Trupanion has a 52 week low of $21.16 and a 52 week high of $46.98. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.77 and a quick ratio of 1.77. The business has a fifty day moving average price of $27.00 and a 200-day moving average price of $26.66.

Insider Buying and Selling

In related news, CEO Margaret Tooth sold 1,000 shares of Trupanion stock in a transaction that occurred on Friday, October 9th. The shares were sold at an average price of $25.84, for a total value of $25,840.00. Following the completion of the transaction, the chief executive officer directly owned 184,952 shares in the company, valued at approximately $4,779,159.68. The trade was a 0.54% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Fawwad Qureshi sold 6,111 shares of the business’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $30.01, for a total value of $183,391.11. Following the sale, the chief financial officer owned 4,230 shares in the company, valued at approximately $126,942.30. The trade was a 59.09% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 14,046 shares of company stock valued at $407,743. Company insiders own 5.58% of the company’s stock.

Analysts Set New Price Targets

Several analysts have recently weighed in on TRUP shares. Atlantic Securities set a $42.00 price target on Trupanion in a report on Wednesday, July 15th. Piper Sandler lowered shares of Trupanion from an “overweight” rating to a “neutral” rating and cut their target price for the stock from $45.00 to $32.00 in a research note on Wednesday, August 26th. Zacks Research downgraded Trupanion from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 24th. Stifel Nicolaus boosted their target price on shares of Trupanion from $28.00 to $29.00 and gave the stock a “hold” rating in a research report on Thursday, August 20th. Finally, Weiss Ratings upgraded Trupanion from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, September 29th. One analyst has rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Trupanion presently has an average rating of “Hold” and an average target price of $38.40.

Trupanion Company Profile

Trupanion, Inc is a pet insurance company that provides medical insurance coverage for cats and dogs. Its products are designed to help pet owners manage the cost of veterinary care, including coverage for eligible illnesses, injuries and other qualifying medical conditions, subject to the terms of each policy.

The company offers subscription-based pet insurance through the Trupanion brand, with coverage generally intended for ongoing veterinary expenses rather than routine or preventive care.