StanCorp Financial Group Inc.
) gave insight into its second quarter 2012 earnings results. The
company expects adjusted earnings to be 51 cents per share, a
year-over-year decline of 13.5% from 59 cents earned in the
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The company had a less favorable claims experience in the group
long-term disability insurance business in the second quarter,
which led to the lower numbers. It also expects to deliver a higher
benefit ratio for its group insurance products. It is expected to
be 88.5%, exceeding the guided range of 80% to 82% for 2012.
StanCorp, however, delivered a lower benefit ratio in the first
quarter due to initiatives undertaken by management to improve the
pricing of the long-term disability business.
The Zacks Consensus Estimate is currently pegged at 85 cents.
StanCorp expects to incur after-tax net capital losses of 6 cents
per share in the second quarter. Taking this into account, net
income is expected to be 45 cents per share, representing a
year-over-year improvement of 12.5%.
In its first quarter earnings release, StanCorp expected its full
year 2012 adjusted earnings to be in the band of $3.60-$3.90 per
share. However, given the performance in the first half of 2012, it
now expects to fall short of its guidance. StanCorp's first quarter
earnings had missed the Zacks Consensus Estimate, although it fared
better compared with the year-ago results.
The share price dropped 0.96% to close at $37.09 as of
We believe premium growth, continued good investment performance,
conservative underwriting practices and focus on increasing
shareholder value along with a strong capital position auger well
for the company over a longer term.
Stancorp is expected to release its second quarter results on July
23 after the bell.
The quantitative Zacks #5 Rank (short-term Strong Sell rating) for
StanCorp indicates downward pressure on the stock over the near
), which compete with Stancorp, both hold a quantitative Zacks #3
Rank (short-term Hold rating), indicating no clear directional
pressure on the stock over the near term. Another peer,
Principal Financial Group Inc.
), holds a quantitative Zacks #4 Rank (short-term Sell rating)
indicating slight downward pressure on the stock over the near