The Hartford Financial Services Group, Inc.
) is set to report second-quarter 2014 earnings results on Jul 30.
Last quarter, it reported a positive earnings surprise of 26.9%.
Let us see how things are shaping up for this announcement.
Factors Affecting the Past Quarter
Hartford Financial's focus on core business enhancement should
help it improve earnings in the quarter. The collaboration with IBM
in Apr 2014 should also improve core businesses and drive growth.
Moreover, Hartford Financial's debt repayment initiatives should
boost financial flexibility and thereby help the company to execute
its capital management plans and generate shareholder value.
However, the Hartford Financial's exposure to catastrophic
events, the lower invested assets in Talcott Resolution and a
decline in income from repurchase agreements are likely to weigh on
the company's earnings.
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
Hartford Financial has an ESP of 0.00%. This is because the Most
Accurate estimate and the Zacks Consensus Estimate both stand at 68
cents per share.
Hartford Financial's Zacks Rank #3 (Hold) increases the predictive
power of ESP, but when combined with a zero ESP, it makes surprise
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 momentum.
Other Stocks to Consider
Here are some companies in the financial services space you may
want to consider as our model shows that they have the right
combination of elements to post an earnings beat this quarter:
Credit Acceptance Corp. (
) has Earnings ESP of +2.39% and a Zacks Rank #2 (Buy).
Arch Capital Group Ltd. (
) has Earnings ESP of +5.10% and a Zacks Rank #2.
Santander Consumer USA Holdings Inc. (
) has Earnings ESP of +6.45% and a Zacks Rank #3.
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