Genworth Financial Inc. Earnings: Swing to a Profit, Topping Analysts’ Estimates

S&P 500 (NYSE:SPY) component Genworth Financial Inc. (NYSE:GNW) reported its results for the fourth quarter. Genworth Financial provides wealth management, insurance, investment and financial solutions to customers.

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Genworth Financial Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a profit of $107 million (22 cents per diluted share) in the quarter. The life insurance company had a net loss of $161 million or a loss of 33 cents per share in the year earlier quarter.

Revenue: Revenue was $2.6 billion last quarter.

Actual vs. Wall St. Expectations: Genworth Financial Inc. beat the mean analyst estimate of 18 cents per share. Analysts were expecting revenue of $2.58 billion.

Quoting Management: “For Genworth, 2011 was a year of repositioning actions to move the company to move through an uncertain environment and provide a foundation for improved shareholder value. We made progress in several areas and will maintain an intense execution focus during 2012. At business portfolio and product line levels, we took important steps to improve our focus, strengthen risk buffers and capital generation, and support future redeployment of capital,” said Michael D. Fraizer, chairman and chief executive officer. “Actions completed or that we continue to pursue include, the planned minority IPO of Australia Mortgage Insurance, shifting new business mix and volumes, selling or exiting non-strategic lines and blocks of business, further streamlining our cost base, and adding to our holding company capital flexibility. Fourth quarter earnings improved from the prior year driven by U.S. Life Insurance and U.S. Mortgage Insurance (U.S. MI) results. International platform capital generation remained strong.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by one cent in the third quarter and by one cent in the second quarter.

Looking Forward: The outlook for the company’s next quarter performance is unfavorable. Estimates have gone down from an average 28 cents per share to 27 cents over the past seven days. The average estimate for the fiscal year is 44 cents per share, down from 48 cents ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com