Hartford Financial Services Group Earnings: Here’s Why the Stock is Falling Now

Hartford Financial Services Group Inc. (NYSE:HIG) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.10%.

Hartford Financial Services Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 186.96% to $0.66 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 19.48% to $5.47 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hartford Financial Services Group Inc. reported adjusted EPS income of $0.66 per share. By that measure, the company missed the mean analyst estimate of $0.71. It beat the average revenue estimate of $5.46 billion.

Quoting Management: “We continue to make progress reducing the size and risk of Talcott Resolution,” said Executive Vice President and Chief Financial Officer Christopher J. Swift. “During the second quarter, variable annuity surrender activity increased, with full surrenders rising to 34.8% on the Japan block and to 17.5% in the U.S., reflecting policyholder behavior in strong markets and our management of the block. In addition, we agreed to sell our U.K. variable annuity business at attractive economics to a subsidiary of Berkshire Hathaway.”

Key Stats (on next page)…

Revenue decreased 40.46% from $9.18 billion in the previous quarter. EPS decreased 28.26% from $0.92 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.73 and has not changed. For the current year, the average estimate has moved up from a profit of $3.15 to a profit of $3.22 over the last ninety days.

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