StanCorp Financial Group Inc
) is set to report second quarter 2013 results on Jul 23. Last
quarter it posted a 33.7% surprise. Let's see how things are
shaping up for this announcement.
Growth Factors This Quarter
StanCorp Financial's Asset Management segment continues to
perform well. The trend is expected to continue in the future.
Further, we expect the company to reap the benefits of lower
operating expenses that helped it to outperform in the last
StanCorp Financial enjoys a strong capital position, which allows
it to enhance shareholder value. StanCorp Financial expects to
buy back shares worth $40 million to $80 million in 2013. This
will boost the bottom line. In order to return more profit, the
company raises its dividend on a regularly basis.
In addition, StanCorp Financial's investment portfolio continues
to perform well with no considerable exposure to high-risk asset
However, lower Group insurance premiums due to a low single-digit
price increase in the group insurance business and stiff
competition weighed on new sales and renewals. The lack of
employment and wage growth is also expected to weigh on the
A low interest rate environment is also a concern.
Our proven model does not conclusively show that StanCorp
Financial is likely to beat earnings this quarter. That is
because a stock needs to have both a positive Expected Surprise
Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
) and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here, as you will see below.
Positive Zacks ESP
: That is because the Most Accurate Estimate stands at
$1.00, while the Zacks Consensus Estimate is higher at $1.01.
That comes to a difference of -0.99%.
Zacks Rank #1 (Strong Buy)
: StanCorp Financial's Zacks Rank #1 (Strong Buy) increases the
predictive power of ESP. However, the Zacks Rank #1 when combined
with a negative ESP makes surprise prediction difficult.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
GENWORTH FINL (GNW): Free Stock Analysis
PRIMERICA INC (PRI): Free Stock Analysis
STANCORP FNL CP (SFG): Free Stock Analysis
UNIVL AMERICAN (UAM): Free Stock Analysis
To read this article on Zacks.com click here.
Genworth Financial Inc
), Earnings ESP of +11.11% and Zacks Rank #3 (Hold)
), Earnings ESP of +1.39% and Zacks Rank #3 (Hold)
Universal American Corp
), Earnings ESP of +0.78% and Zacks Rank #3 (Hold)