Why Progressive Stock Was Topping the Market Today

In late-session trading Wednesday, investors were collectively see-sawing on their reaction to Progressive's (NYSE: PGR) first-quarter earnings release. That was understandable, as the company convincingly beat the consensus analyst for revenue, but posted weaker-than-expected net income.

That indecision basically left the insurer's stock flat compared to Tuesday's closing price, but at least it was doing better than the bellwether S&P 500 index's 3%-plus drop.

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A mixed first quarter

For the inaugural quarter of 2025, Progressive's net premiums earned (essentially, total revenue) was $22.2 billion, representing muscular 17% growth year over year. The insurer's net income also rose, albeit more modestly at a 10% rate to just under $2.6 billion, or $4.37 per share.

On average, analysts following Progressive's progress were modeling a top line of $21.6 billion, and a per-share net income figure of $4.74.

In its earnings release, the company said it had no commentary to offer at this time about the results. Investors and analysts will have to wait until the morning of Tuesday, May 6, when management discusses them in more detail in a conference call.

A new Plus for the business

Investors might also have been cheered by Progressive's news that it has launched Cargo Plus. This is a new endorsement (i.e., a modification) for its truck coverage that insures truckers against damage to property while in their custody and control. While this isn't a game-changing move for the company, it indicates that management is actively seeking coverage areas to help keep those growth numbers up.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Progressive. The Motley Fool has a disclosure policy.