Genworth Financial, Inc.
) is set to report second-quarter 2014 results on Jul 29 after the
market closes. Last quarter, the company posted an 8.33% positive
earnings surprise. Let's see how things are shaping up for this
Factors Influencing This Past Quarter
A low interest rate environment, which is creating pressure on
investment income, is expected to weigh on the bottom line of
Genworth in the second quarter.
In addition, the introduction of products and pricing changes in
the U.S. Life Insurance Division might weigh on life insurance
sales and long-term care insurance sales. Loss ratio is also
expected to increase.
However, improving performance at the mortgage insurance division
and approval of rate increases will somewhat check the downside.
Our proven model does not conclusively show that Genworth is likely
to beat earnings estimate this quarter because it does not have the
right combination of two key ingredients. A stock needs to have
both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here, as you will see below.
: Genworth has an Earnings ESP of -2.86%. That is because the
Most Accurate Estimate stands at 34 cents while the Zacks Consensus
Estimate is higher at 35 cents.
: Genworth has a Zacks Rank #3 (Hold) which increases the
predictive power of ESP. However, a combination of Zacks Rank #3
and a -2.86% Earnings ESP make surprise prediction difficult.
Other Stocks to Consider
Here are some companies you may want to consider as our model shows
these have the right combination of elements to post an earnings
beat this quarter:
Arch Capital Group Ltd. (
), Earnings ESP of +5.10% and a Zacks Rank #2 (Buy).
Unum Group (
), Earnings ESP of +1.15% and a Zacks Rank #3.
Protective Life (
), Earnings ESP of +0.83% and a Zacks Rank #3.
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GENWORTH FINL (GNW): Free Stock Analysis Report
UNUM GROUP (UNM): Free Stock Analysis Report
PROTECTIVE LIFE (PL): Free Stock Analysis
ARCH CAP GP LTD (ACGL): Free Stock Analysis
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