) reported third quarter 2012 adjusted net income of 86 cents per
share, beating the Zacks Consensus Estimate of 72 cents by a
significant margin. Earnings also soared 95% year over year from
44 cents per share. Adjusted net income stood at $339
million, surging 92% year over year.
Including post-tax non-cash ceiling test impairment charges of
$166 million and net investment gains of $4 million, Loews
reported net income of $177 million or 45 cents per share,
comparing favorably with $162 million or 40 cents per share in
the year-ago quarter. The prior-year quarter includes net
investment losses of $15 million.
Lower earnings at
Diamond Offshore Drilling Inc.
) weighed on the results, while improved earnings at
CNA Financial Corporation
) and enhanced results from equity and limited partnership
investments at the parent company were the positives.
Total revenue at Loews in the quarter came in at $3.72
billion, up 8.1% from $3.44 billion in the prior-year quarter.
Substantially higher net investment income and investment gains,
along with enhanced insurance premiums, led to the overall
improvement in top line, partly offset by lower contract drilling
Total expense in the quarter increased 10.2% year over year to
$3.31 billion. The increase was mainly due to higher insurance
claims & policyholders' benefits, which was partly offset by
lower contract drilling expenses.
posted the highest growth in revenue in the quarter, which
improved 19.5% year over year to $98 million. Net loss amounted
to $1 million.
's revenue increased 11.5% over the prior-year period to $2.5
billion in the quarter under review. The company reported net
income attributable to Loews Corp. of $195 million, improving
132% year over year. The improvement largely stemmed from lower
catastrophe losses and improved net investment income due to
strong limited partnership investment results.
The Boardwalk Pipeline
's revenue inched up 0.7% to $271 million from the prior-year
level. Earnings improved 11.1% to $20 million in the quarter.
's revenue decreased 17.1% year over year to $730 million.
Earnings plunged 31.4% year over year to $83 million, largely due
to reduced rig utilization and lower average dayrate.
's revenue declined 22.1% year over year to $74 million in the
quarter under review. Earnings plummeted 50% year over year
to $8 million. The company also recorded a ceiling test
impairment charge of $166 million.
Book value as of September 30, 2012, was $50.41 per share, up
6% from $47.58 as of September 30, 2011.
During the third quarter, Loews spent $88 million to buyback
2.2 million shares.
The Travelers Companies Inc.
), reported earnings of $2.22 per share in the third quarter of
2012, outshining the Zacks Consensus Estimate of $1.61 per share.
Results surged 181% from 79 cents earned in the year-ago quarter.
Operating income in the reported quarter was $867 million,
jumping 161% year over year.
Lower catastrophe losses and sturdy underwriting results
fueled the better-than-expected results.
Total revenue in the quarter under review was $6.5 billion,
increasing 2% year over year, driven by the augmentation in
premiums earned and net investment income. Revenue surpassed the
Zacks Consensus Estimate of $6.3 billion.
We maintain our Neutral recommendation on Loews over the long
term. The quantitative Zacks #3 Rank (short-tem Hold rating) for
the company indicates no clear directional pressure on the shares
over the near term.
CNA FINL CORP (CNA): Free Stock Analysis
DIAMOND OFFSHOR (DO): Free Stock Analysis
LOEWS CORP (L): Free Stock Analysis Report
TRAVELERS COS (TRV): Free Stock Analysis
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