Genworth Financial Earnings: Here’s Why Investors are Happy Now

Genworth Financial Inc. (NYSE:GNW) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.60%

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Genworth Financial Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 250% to $0.21 in the quarter versus EPS of $0.06 in the year-earlier quarter.

Revenue: Decreased 5.07% to $2.3 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Genworth Financial Inc. reported adjusted EPS income of $0.21 per share. By that measure, the company missed the mean analyst estimate of $0.27. It missed the average revenue estimate of $2.49 billion.

Quoting Management: “We achieved several milestones in the first quarter of 2013, including progress on our long term care premium rate increase plans, the announcement of the sale of our wealth management business, execution of the U.S. Mortgage Insurance capital plan on April 1 and reporting a profitable quarter in that business,” said Tom McInerney, President and CEO. “I am pleased with the progress on execution, but we must continue to focus and take action on our plan for rebuilding shareholder value.”

Key Stats (on next page)…

Revenue decreased 9.26% from $2.54 billion in the previous quarter. EPS decreased 38.24% from $0.34 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.3 to a profit $0.29. For the current year, the average estimate has moved down from a profit of $1.26 to a profit of $1.14 over the last ninety days.

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