Loews Corp Earnings Cheat Sheet: The Profit Streak Continues

Falling revenue did not prevent S&P 500 (NYSE:SPY) component Loews Corporation (NYSE:L) from reporting a profit boost in the third quarter. Through its subsidiaries, Loews is involved in commercial property and casualty insurance, operation of offshore oil and gas drilling rigs, production of natural gas and liquids, operation of interstate natural gas pipeline, and operation of hotels.

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Loews Earnings Cheat Sheet for the Third Quarter

Results: Net income for Loews Corporation rose to $162 million (40 cents per share) vs. $36 million (9 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter.

Revenue: Fell 7.1% to $3.44 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: L fell short of the mean analyst estimate of 54 cents per share.

Key Stats:

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 16 cents in the second quarter and by 2 cents in the first quarter.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the second quarter, net income fell 31.1% while the figure dropped in the first quarter.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 1.6% to $3.54 billion in the second quarter from the year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 77 cents per share, down from 81 cents ninety days ago. For the fiscal year, the average estimate has moved down from $3.17 a share to $2.87 over the last ninety days.

Competitors to Watch: CNA Financial Corporation (NYSE:CNA), The Chubb Corporation (NYSE:CB), The Travelers Companies, Inc. (NYSE:TRV), W.R. Berkley Corporation (NYSE:WRB), Markel Corporation (NYSE:MKL), American Financial Group (NYSE:AFG), American Intl. Group, Inc. (NYSE:AIG), Old Republic Intl. Corp. (NYSE:ORI), Cincinnati Financial Corp. (NASDAQ:CINF), and RLI Corp. (NYSE:RLI).

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(Source: Xignite Financials)