Hartford Financial Earnings: Strong Revenue Helps Net Income

S&P 500 (NYSE:SPY) component Hartford Financial Services Group Inc. (NYSE:HIG) reported higher profit for the third quarter as revenue showed growth. Hartford Financial Services Group provides investment products and insurance products in the United States.

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Hartford Financial Services Group Inc. Earnings Cheat Sheet

Results: Net income for the insurance-multiline rose to $401 million (83 cents per share) vs. $60 million (11 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Revenue: Rose 42.5% to $6.44 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hartford Financial Services Group Inc. beat the mean analyst estimate of 82 cents per share. It beat the average revenue estimate of $5.43 billion.

Quoting Management: “The Hartford generated strong third quarter financial results, reflecting continued P&C pricing momentum and low catastrophes,” said Chairman, President and CEO Liam E. McGee. “Renewal pricing increased 8% in Standard Commercial, 4% in personal auto and 6% in homeowners, with higher retention in all three lines. Group Benefits long-term disability terminations improved, resulting in a slightly lower loss ratio. Fixed income deposits grew in Mutual Funds, resulting in significantly better net flows.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 23 cents versus a mean estimate of net income of 48 cents per share.

After dropping in the quarter before, revenue increased last quarter. Revenue fell 15.3% to $4.57 billion in the second quarter from the year earlier.

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 88 cents a share to 87 cents over the last ninety days. The average estimate for the fiscal year is $3.20 per share, down from $3.30 ninety days ago.

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

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