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.”
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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