Primerica Earnings: Here’s Why the Stock is Down Now

Primerica, Inc. (NYSE:PRI) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.49%.

Primerica, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.23% to $0.74 in the quarter versus EPS of $0.71 in the year-earlier quarter.

Revenue: Rose 3.92% to $312.31 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Primerica, Inc. reported adjusted EPS income of $0.74 per share. By that measure, the company beat the mean analyst estimate of $0.72. It missed the average revenue estimate of $317.7 million.

Quoting Management: Rick Williams, Chairman of the Board and Co-Chief Executive Officer said, “Second quarter results reflect our focus on driving long-term, organic growth as well as share repurchases. Enhancements made to our Investment and Savings Products business continued to gain traction with a 10% increase in ISP sales in the second quarter. Our $155 million retirement of shares and warrants in June was accretive to earnings per share and drove ROAE to 14.6%.”

Key Stats (on next page)…

Revenue increased 1.25% from $308.45 million in the previous quarter. EPS increased 12.12% from $0.66 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.75 to a profit $0.76. For the current year, the average estimate has moved up from a profit of $2.91 to a profit of $2.92 over the last ninety days.

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

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