All eyes will be on Suncorp Group Ltd (ASX: SUN) shares next week.
Thatâs because the insurance giant is scheduled to release its full-year results on Tuesday 8 August.
Ahead of the release, letâs take a look to see what the market is expecting from the company.
Suncorp results expectations
According to a note out of Goldman Sachs, its analysts are expecting Suncorp to report gross written premiums (GWP) growth of 8.5% to $12,355.9 million for FY 2023.
This is expected to comprise an Australian GWP of $10,189 million and a New Zealand GWP of $2,166 million. And with the broker forecasting a second-half underlying margin of 12%, this is expected to lead to strong earnings.
Goldman expects cash earnings of $1,240 million for the 12 months, up from $673 million a year earlier. On a per share basis, this equates to 94 cents per share.
From this, the broker is expecting Suncorp to reward shareholders with a 70 cents per share fully franked dividend. Based on where Suncorp shares are currently trading, this represents a 5% dividend yield.
Finally, investors may also want to watch out for any guidance for FY 2024. Goldman is expecting an underlying insurance margin of 11.3% next year and GWP growth of 6.6% to $13,170 million.
Are Suncorp shares good value?
Goldman still sees value in Suncorp shares at the current level and has a buy rating and a $15.13 price target on them.
This implies a 7% upside for investors over the next 12 months or a total potential return of 15% including dividends.
This could make it worth considering if you’re looking for income options or exposure to the financials sector.
