) is set to report fourth-quarter 2013 results on Feb 4. Last
quarter, the company posted a positive 3.66% earnings surprise.
Let's see how things are shaping up for this announcement.
Growth Factors this Past Quarter
Disciplined pricing, underwriting and risk results across its
primary business segments are expected to drive the quarterly
results at Unum Group. Conservative pricing and reservation
practices should widen Unum's profit margin.
A lower share count due to share buybacks is also expected to
boost the bottom line.
Due to reinsurance agreements effective Jan 2013, Unum U.K. is
set to cede a portion of its group life business to other
insurance companies. The reinsurance agreements are expected to
continue to put pressure on group life premium income and benefit
payments, weighing on its operating income.
A soft interest rate environment might continue to weigh on
Our proven model does not conclusively show that Unum Group is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
: That is because the Most Accurate estimate stands at 83
cents while the Zacks Consensus Estimate is higher at 84 cents.
That leads to an earnings ESP of -1.19%.
: Unum Group's Zacks Rank #3 (Hold) when combined with a negative
ESP makes surprise prediction difficult. We caution against
stocks with a Zacks Ranks #4 and 5 (Sell-rated stocks) going into
the earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Stocks to Consider
Here are some companies you may want to consider as our model
shows they have the right combination of elements to post an
earnings beat this quarter:
Aspen Insurance Holdings Ltd
), earnings ESP of +3.57% and a Zacks Rank #3.
), earnings ESP of +13.59% and a Zacks Rank #2 (Buy).
Platinum Underwriters Holdings Ltd
), earnings ESP of +3.10% and a Zacks Rank #3.
ASPEN INS HLDGS (AHL): Free Stock Analysis
PROASSURANCE CP (PRA): Free Stock Analysis
PARTNERRE LTD (PRE): Free Stock Analysis
UNUM GROUP (UNM): Free Stock Analysis Report
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