Trupanion (NASDAQ:TRUP) Announces Quarterly Earnings Results

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

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 Up 3.1%

Shares of Trupanion stock traded up $1.05 on Thursday, hitting $34.72. The company had a trading volume of 733,923 shares, compared to its average volume of 437,702. The stock has a 50-day moving average of $27.00 and a 200-day moving average of $26.66. The firm has a market capitalization of $1.52 billion, a P/E ratio of 65.51, a P/E/G ratio of 1.86 and a beta of 1.27. The company has a debt-to-equity ratio of 0.24, a current ratio of 1.77 and a quick ratio of 1.77. Trupanion has a twelve month low of $21.16 and a twelve month high of $46.98.

Analysts Set New Price Targets

TRUP has been the topic of a number of recent analyst reports. Weiss Ratings raised Trupanion from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, September 29th. Stifel Nicolaus increased their target price on Trupanion from $28.00 to $29.00 and gave the stock a “hold” rating in a report on Thursday, August 20th. Piper Sandler cut shares of Trupanion from an “overweight” rating to a “neutral” rating and cut their target price for the company from $45.00 to $32.00 in a research note on Wednesday, August 26th. Cantor Fitzgerald lowered their price objective on shares of Trupanion from $34.00 to $30.00 and set a “neutral” rating for the company in a research report on Wednesday, October 7th. Finally, Atlantic Securities set a $42.00 price target on Trupanion in a report on Wednesday, July 15th. One investment analyst has rated the stock with a Buy rating and five have given a Hold rating to the company. Based on data from MarketBeat, Trupanion has an average rating of “Hold” and an average price target of $38.40.

Insider Transactions at Trupanion

In other news, CFO Fawwad Qureshi sold 6,111 shares of Trupanion stock in a transaction that occurred 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 directly owned 4,230 shares in the company, valued at $126,942.30. This trade represents a 59.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Margaret Tooth sold 1,000 shares of Trupanion stock in a transaction on Friday, October 9th. The shares were sold at an average price of $25.84, for a total transaction of $25,840.00. Following the completion of the sale, the chief executive officer owned 184,952 shares in the company, valued at $4,779,159.68. The trade was a 0.54% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 14,046 shares of company stock valued at $407,743 in the last ninety days. 5.58% of the stock is currently owned by corporate insiders.

About Trupanion

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.