Hartford Financial Services Group Inc. Earnings: Net Income Sinks
S&P 500 (NYSE:SPY) component Hartford Financial Services Group Inc. (NYSE:HIG) reported its results for the first quarter. Hartford Financial Services Group provides investment products and insurance products in the United States.
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Hartford Financial Services Group Earnings Cheat Sheet for the First Quarter
Results: Net income for the insurance-multiline fell to $96 million (18 cents per share) vs. $501 million (99 cents per share) a year earlier. This is a decline of 80.8% from the year-earlier quarter.
Revenue: Rose 21.4% to $7.66 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Hartford Financial Services Group Inc. reported adjusted net income of $1.25 per share. By that measure, the company beat the mean estimate of 92 cents per share. It beat the average revenue estimate of $5.43 billion.
Quoting Management: “The Hartford reported strong first quarter financial results,” said Liam E. McGee, chairman, president and CEO. “P&C Commercial’s pricing momentum continued and retention remained strong. Consumer Markets had favorable margins and new business trends, while Mutual Fund assets under management and sales increased from year-end levels. Group Benefits has multiple initiatives underway to improve profitability.”
Last quarter’s year-over-year revenue increase breaks a two-quarter streak of revenue declines. Revenue fell 6.9% in the fourth quarter of the last fiscal year and fell 32.3% in the third quarter of the last fiscal year.
The company has beaten estiamtes for two quarters in a row. In the fourth quarter of the last fiscal year, it topped expectations with net income of 69 cents versus a mean estimate of net income of 59 cents per share.
Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 78 cents per share, down from 80 cents ninety days ago. At $3.43 per share, the average estimate for the fiscal year has risen from $3.35 sixty days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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