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Assurant (AIZ) to Report Q4 Earnings: What's in the Cards?

Zacks Equity Research

Assurant, Inc. AIZ is slated to report fourth-quarter 2019 results on Feb 11, after market close.

For the to-be-reported quarter, the Zacks Consensus Estimate for the company’s earnings is pegged at $2.41, indicating a skyrocketing upside of 213% from the year-ago reported figure.

The company delivered a positive earnings surprise in each of the last four quarters, the average being 20.25%.

Factors at Play

Assurant is likely to have benefited from solid results at Global Lifestyle, Housing and Preneed business lines. Strong revenue contributions from its segments might have driven its overall performance.

Global Housing’s performance is likely to have been aided by higher penetration rates at the new point of lease billing and focus on operational excellence.

The company might have accelerated investments in supporting the mobile industry growth trajectory, reflecting initial program start-up costs for new clients and its current clientele.

All these factors combined are likely to have boosted revenue improvement.

The Zacks Consensus Estimate for revenues is pegged at $2.5 billion, indicating a 6.1% increase from the year-ago reported figure.

The company is also expected to have continued witness a strong cash-flow generation in the fourth quarter.

The company continued enhancing shareholder value through dividends and share buybacks.

However, expenses might have escalated due to higher corporate expenses, elevated employee-related expenses, third-party professional fees, underwriting, general and administrative costs plus interest expense.

What Our Quantitative Model States

Our proven model does not conclusively predict an earnings beat for Assurant this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. But that’s not the case here.

Earnings ESP: Assurant has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.41. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Assurant, Inc. Price and EPS Surprise

Assurant, Inc. Price and EPS Surprise

Assurant, Inc. price-eps-surprise | Assurant, Inc. Quote

 

Zacks Rank: Assurant carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.

Q3 Highlights

Assurant reported third-quarter 2019 net operating income of $1.69 per share, in line with the Zacks Consensus Estimate. Meanwhile, the bottom line soared 59% from the year-ago quarter. The results reflected upsides from earnings growth in Global Lifestyle and lower catastrophes in Global Housing.

Stocks to Consider

Some stocks worth considering from the finance sector with the apt combination of elements to surpass estimates this reporting cycle are as follows:

Moody's Corporation MCO is slated to report fourth-quarter earnings on Feb 12. It has a Zacks Rank #2 and an Earnings ESP of +0.57%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sun Life Financial Inc. SLF is set to report fourth-quarter earnings on Feb 12. The company has a Zacks Rank of 2 and an Earnings ESP of +1.27%.

AXA Equitable Holdings, Inc. EQH is slated to announce fourth-quarter earnings on Feb 27. The stock has an Earnings ESP of +0.18% and is a #2 Ranked player.

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