) is scheduled to report its second-quarter 2014 results after the
market closes on Jul 23.
In the last quarter, this multi-line insurer delivered a 7.7%
positive earnings surprise. The average beat for the trailing four
quarters is 8.0%.
Will Assurant deliver a positive earnings surprise this quarter as
well? Let's see what factors might have influenced the
earnings report this time around.
Factors Likely to Influence Q2 Results
The company's Solutions segment is expected to generate higher
earnings from its mobile business, expense saving from prior
restructuring actions and earnings accretion from the recent
acquisition of mobile phone insurance provider LifeStyle Group.
We also expect Assurant's Employee Benefit segment to see higher
earnings from growth in sales of voluntary products.
However, earnings at the company's Specialty Property segment may
see a drag from lower lender-placed business, as real estate market
gains strength. During the quarter, the segment acquired
StreetLinks LLC, to expand appraisal services for the mortgage
industry. This transaction will, however, add to earnings next
Assurant's Health segment will continue to weigh upon the company's
overall earnings. Higher commission on sales and higher tax
liabilities related to the health care reform that was experienced
during the first quarter is also expected to have drained earnings
in the second quarter.
Our proven model does not conclusively show that Assurant is likely
to beat the Zacks Consensus Estimate in the second quarter. That is
because a stock needs to have both a positive Earnings ESP and a
Zacks Rank #1 (Strong Buy) or at least 2 (Buy) or 3 (Hold) for this
to happen. But this is not the case here as elaborated below.
Assurant's Most Accurate estimate is pegged at $1.53 per share,
which is in line the Zacks Consensus Estimate. The Earnings ESP is
Assurant has a Zacks Rank #3 (Hold). Though Zacks Rank #1, 2 or 3
increases the predictive power of ESP, the company's ESP of 0.00%
makes surprise prediction difficult.
Other Stocks to Consider
Here are some companies you may want to consider as our model shows
that these have the right combination of elements to post an
earnings beat this quarter:
), Earnings ESP of +2.5% and Zacks Rank #1.
), Earnings ESP of +2.2% and a Zacks Rank #3.
Lincoln National Corporation
), Earnings ESP of +1.5% and a Zacks Rank #2.
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