The Hartford Financial Services Group, Inc.
) is set to report fourth-quarter 2013 results on Feb 3, 2014.
Last quarter, it posted a 24.1% surprise. Let's see how things
are shaping up for this announcement.
Growth Factors this Past Quarter
Hartford Financial has been enhancing its operational
efficiency through successful divestitures. In Dec 2013 Hartford
Financial vended its U.K. Variable Annuity Business to
Berkshire Hathaway Inc.
) to reduce risks in its Talcott Resolution segment. Further,
Hartford Financial's refinancing options should reduce borrowing
costs and enhance capital structure, thereby enhancing investor
confidence. Moreover, the recent launch of a small commercial
training program to train its agency professionals aims at
gaining more customers. However, low policy retention and net
investment income yield, and certain provisions of the Affordable
Care Act might dampen the results of Hartford Financial to some
Our proven model does not conclusively show that Hartford
Financial is likely to beat earnings this quarter. That is
because a stock needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank of #1, 2 or 3 for
this to happen. That is not the case here as you will see
Zero Zacks ESP:
That is because the Most Accurate estimate and the Zacks
Consensus Estimate both stand at 90 cents, making the difference
Zacks Rank #3 (Hold):
Hartford Financial's Zacks Rank #3 increases the predictive power
of ESP, but when combined with a 0.00% ESP, it makes surprise
prediction difficult. We caution against stocks with Zacks Rank
#4 and 5 (Sell-rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions .
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:
FBL Financial Group Inc.
), Earnings ESP of +4.49% and Zacks Rank #1 (Strong Buy).
ING U.S. Inc.
) with Earnings ESP of +2.94% and Zacks Rank #2 (Buy).
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis
FBL FINL GRP-A (FFG): Free Stock Analysis
HARTFORD FIN SV (HIG): Free Stock Analysis
ING US INC (VOYA): Free Stock Analysis Report
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