Unum Group Earnings: Profit Rises Year-Over-Year

S&P 500 (NYSE:SPY) component Unum Group (NYSE:UNM) reported net income above Wall Street’s expectations for the third quarter. Unum Group provides group and individual disability products in the United States and provides a portfolio of other insurance products, including longterm care insurance, life insurance and employee-paid group benefits.

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Unum Group Earnings Cheat Sheet

Results: Net income for Unum Group rose to $230.2 million (83 cents per share) vs. $202 million (68 cents per share) in the same quarter a year earlier. This marks a rise of 14% from the year-earlier quarter.

Revenue: Rose 3.2% to $2.63 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Unum Group beat the mean analyst estimate of 77 cents per share. Analysts were expecting revenue of $2.59 billion.

Quoting Management: “I continue to be pleased with the overall performance of the Company, especially the premium growth and profitability we are generating in our core U.S. based businesses, our solid investment performance, and our strong capital position, which gives us significant financial flexibility,” said Thomas R. Watjen, president and chief executive officer. “While our U.K. business is not meeting our expectations and today’s low interest rates present challenges, I am confident that the actions we are taking will enable us to continue to deliver solid financial results and consistently return capital to our shareholders.”

Key Stats:

Revenue has increased for four consecutive quarters. Revenue increased 2.1% to $2.62 billion in the second quarter. The figure rose 1.9% in the first quarter from the year earlier and climbed 0.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 79 cents versus a mean estimate of net income of 76 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 81 cents a share to 79 cents over the last ninety days. At $3.07 per share, the average estimate for the fiscal year has fallen from $3.08 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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