Genworth Financial Inc. Earnings Cheat Sheet: Falls Below Expectations as Net Income Declines

S&P 500 (NYSE:SPY) component Genworth Financial Inc. (NYSE:GNW) reported a lower net income in the third quarter compared with a year earlier, falling below analysts’ estimates. Genworth Financial provides wealth management, insurance, investment and financial solutions to customers.

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Genworth Financial Earnings Cheat Sheet for the Third Quarter

Results: Net income for Genworth Financial Inc. fell to $29 million (6 cents per share) vs. $83 million (17 cents per share) a year earlier. This is a decline of 65.1% from the year earlier quarter.

Revenue: Revenue was $2.52 billion last quarter.

Actual vs. Wall St. Expectations: GNW fell short of the mean analyst estimate of 20 cents per share. It fell short of the average revenue estimate of $2.63 billion.

Quoting Management: “Third quarter reported earnings reflected improvement in Retirement and Protection and consistent overall international performance, excluding tax items,” said Michael D. Fraizer, chairman and chief executive officer. “U.S. Mortgage Insurance losses declined due to good loss mitigation results, stability in the aging of loan delinquencies and higher levels of profitable new business. International capital generation remained strong while revenues slowed reflecting smaller origination markets. We continue to pursue and accelerate value-enhancing strategies to redeploy and optimize capital while maintaining appropriate risk buffers, including strategic management of new business levels and our plan to pursue a minority share IPO of our Australian mortgage insurance business.”

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with a loss of -15 cents versus a mean estimate of a loss of 16 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 28 cents a share to 24 cents over the last ninety days. The average estimate for the fiscal year is 48 cents per share, down from 54 cents ninety days ago.

Competitors to Watch: CNO Financial Group, Inc. (NYSE:CNO), American National Insurance Co. (NASDAQ:ANAT), AEGON N.V. (NYSE:AEG), MetLife, Inc. (NYSE:MET), Atlantic American Corp. (NASDAQ:AAME), Torchmark Corporation (NYSE:TMK), StanCorp Financial Group, Inc. (NYSE:SFG), Penn Treaty American Corp. (PTYA), Prudential Financial, Inc. (NYSE:PRU), and Lincoln National Corp. (NYSE:LNC).

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(Source: Xignite Financials)