Genworth Financial Earnings: Here’s Why the Stock is Falling 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 down 4.49%.

Genworth Financial Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 75% to $0.28 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Decreased 6.02% to $2.37 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Genworth Financial Inc. reported adjusted EPS income of $0.28 per share. By that measure, the company missed the mean analyst estimate of $0.29. It missed the average revenue estimate of $2.44 billion.

Quoting Management: “We are beginning to see good results from our efforts to improve the operating performance of the businesses with strong performance in Global Mortgage Insurance, further progress on long term care insurance rate actions and execution of an expense reduction plan,” said Tom McInerney, President and CEO. “We continue to increase financial flexibility with an ordinary dividend from the U.S. life companies and consistent dividends from Global Mortgage Insurance. These are some of the important milestones in our plan to turn the company around.”

Key Stats (on next page)…

Revenue increased 2.95% from $2.3 billion in the previous quarter. EPS decreased 6.67% from $0.30 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 $0.29 to a profit $0.28. For the current year, the average estimate has moved down from a profit of $1.16 to a profit of $1.15 over the last ninety days.

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

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