2 Financial Stocks Moving in Different Directions With Earnings Out

XL Group plc (NYSE:XL) swung to a loss in the fourth quarter, missing analysts’ forecast. Reported a loss of $515.5 million ($1.62 per diluted share) in the quarter. XL Group plc had a net income of $188.1 million or 57 cents per share in the year earlier quarter. Revenue rose 8.8% to $1.73 billion from the year earlier quarter. XL Group reported an adjusted loss of 25 cents per share. By this measure, the company fell short of the mean analyst estimate of 18 cents per share. It beat the average revenue estimate of $1.52 billion.

Chief Executive Officer Mike McGavick said: “XL was clearly impacted in 2011, like companies throughout the property and casualty industry, by a year that suffered from one of the largest aggregate worldwide catastrophe losses in history, including, most recently, the devastating Thailand floods. While we believe XL’s catastrophe loss profile, relative to our peers, showed the effectiveness of our risk management process, we also again experienced an unacceptable level of non-catastrophe insurance losses in isolated underwriting areas. We have added new leaders and talented teams to these areas, and are sharply focused on delivering improved results. We will not shy away from our 2011 results, including a frustrating fourth quarter and full year 2011, and a significant non-cash charge to eliminate the Insurance segment’s goodwill reflecting continuing low valuations in our sector. But, we do want to ensure our results are viewed within the broader perspective of our goals and strategy.”

Competitors to Watch: Arch Capital Group Ltd. (NASDAQ:ACGL), The Travelers Companies, Inc. (NYSE:TRV), PartnerRe Ltd. (NYSE:PRE), American Insurance Group (NYSE:AIG), Axis Capital Holdings Ltd. (NYSE:AXS), Montpelier Re Hldgs. Ltd. (NYSE:MRH), RenaissanceRe Hldgs. Ltd. (NYSE:RNR), Aspen Insurance Hldgs. Ltd. (NYSE:AHL).

Prospect Capital Corporation (NASDAQ:PSEC) reported net income above Wall Street’s expectations for the second quarter. Net income for Prospect Capital Corporation rose to $64.5 million (59 cents per share) vs. $31.9 million (37 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter. Prospect Capital Corporation reported adjusted net income of 33 cents per share. By that measure, the company beat the mean estimate of 29 cents per share.

Competitors to Watch: Main Street Capital Corp. (NYSE:MAIN), MCG Capital Corporation (NASDAQ:MCGC), American Capital Ltd. (NASDAQ:ACAS), Saratoga Investment Corp. (NYSE:SAR), Kohlberg Capital Corp. (NASDAQ:KCAP), Gladstone Capital Corp. (NASDAQ:GLAD), Gladstone Investment Corp. (NASDAQ:GAIN), MVC Capital, Inc. (NYSE:MVC), Ares Capital Corporation (NASDAQ:ARCC), and Equus Total Return, Inc. (NYSE:EQS).



To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com