Assurant Inc. Earnings Cheat Sheet: Profit Up

Falling revenue did not prevent S&P 500 (NYSE:SPY) component Assurant Inc. (NYSE:AIZ) from reporting a profit boost in the third quarter. Assurant provides specialized insurance products and related services in North America and some international markets.

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Assurant Earnings Cheat Sheet for the Third Quarter

Results: Net income for Assurant Inc. rose to $76 billion (79 cents per share) vs. $141.7 million ($1.30 per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Fell 2.5% to $2.06 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: AIZ fell short of the mean analyst estimate of 82 cents per share. Analysts were expecting revenue of $2.03 billion.

Quoting Management: “Losses caused by storms reduced earnings, but our response demonstrated the value our products provide to customers when catastrophes occur,” said Robert B. Pollock, president and CEO of Assurant. “We continued to build value for our shareholders through new sales in all of our businesses and maintained our sharp focus on improving operations.”

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 3.6% to $2.06 billion in the second quarter. The figure fell 6.1% in the first quarter from the year earlier and dropped 3.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by 12 cents with net income of 76 cents versus a mean estimate of net income of 88 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.33 a share to $1.36 over the last thirty days. The average estimate for the fiscal year is $4.29 per share, down from $4.73 ninety days ago.

Competitors to Watch: Hartford Financial Services (NYSE:HIG), American Financial Group (NYSE:AFG), HCC Insurance Hldgs., Inc. (NYSE:HCC), Hilltop Holdings Inc. (NYSE:HTH), The Allstate Corporation (NYSE:ALL), Old Republic Intl. Corp. (NYSE:ORI), American Intl. Group, Inc. (NYSE:AIG), The Travelers Companies, Inc. (NYSE:TRV), CNA Financial Corporation (NYSE:CNA), and The Chubb Corporation (NYSE:CB).

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(Source: Xignite Financials)