Cincinnati Financial Earnings: Everything You Must Know Now

Cincinnati Financial Corp. (NASDAQ:CINF) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Cincinnati Financial Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 258.82% to $0.61 in the quarter versus EPS of $0.17 in the year-earlier quarter.

Revenue: Rose 8.24% to $1.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cincinnati Financial Corp. reported adjusted EPS income of $0.61 per share. By that measure, the company beat the mean analyst estimate of $0.41. It missed the average revenue estimate of $1.11 billion.

Quoting Management: Steven J. Johnston, president and chief executive officer, commented: “On both a net and operating basis, our earnings rose to the best level for any second quarter and any first half since 2007. Higher insurance underwriting profits drove the improvement, with pretax income from our investment portfolio also contributing at nearly the same satisfactory level reported for last year’s second quarter. Our $34 million underwriting profit was the first second-quarter gain we’ve reported in six years, making this the sixth quarter out of the past seven with underwriting profit.”

Key Stats (on next page)…

Revenue increased 0.09% from $1.1 billion in the previous quarter. EPS decreased 21.79% from $0.78 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.46 to a profit $0.48. For the current year, the average estimate has moved up from a profit of $2.14 to a profit of $2.24 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , , ,  

More from The Cheat Sheet