Cincinnati Financial Earnings: Beats the Street on Profit Rise

S&P 500 (NYSE:SPY) component Cincinnati Financial Corporation (NASDAQ:CINF) reported net income above Wall Street’s expectations for the third quarter. Cincinnati Financial markets property casualty insurance.

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Cincinnati Financial Corporation Earnings Cheat Sheet

Results: Net income for Cincinnati Financial Corporation rose to $111 million (68 cents per share) vs. $19 million (12 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Revenue: Rose 9.6% to $1.03 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cincinnati Financial Corporation beat the mean analyst estimate of 41 cents per share. It beat the average revenue estimate of $991 million.

Quoting Management: Steven J. Johnston, president and chief executive officer, commented, “Our consolidated operating income for the third quarter matched the sum for the first two quarters, doubling our year-to-date earnings. This strong performance puts us on a pace to achieve our full-year 2012 targets as we head into the fourth quarter, which typically has been our best quarter of the year. Moreover, it attests to the soundness of our strategies to create value over time and the progress we are making through our current initiatives to drive profitable growth.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 7 cents in the second quarter, by 6 cents in the first quarter, and by 19 cents in the fourth quarter of the last fiscal year.

Revenue has increased for four quarters in a row. Revenue increased 4.6% to $1.02 billion in the second quarter. The figure rose 6.1% in the first quarter from the year earlier and climbed 2% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: The average estimate for the fourth quarter is steady at 49 cents a share. Over the past three months, the average estimate for the fiscal year has climbed from $1.47 per to share to $1.53.

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

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