StanCorp Financial Group Earnings: A Mixed Bag

StanCorp Financial Group Inc. (NYSE:SFG) posted lower net income in the third quarter compared with a year-earlier period. StanCorp Financial Group is a holding company and conducts business through wholly-owned operating subsidiaries throughout the United States.

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StanCorp Financial Group Inc. Earnings Cheat Sheet

Results: Net income for StanCorp Financial Group Inc. fell to $44.9 million ($1.01 per share) vs. $47 million ($1.05 per share) a year earlier. This is a decline of 4.5% from the year-earlier quarter.

Revenue: Fell 1.3% to $713.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: StanCorp Financial Group Inc. reported adjusted net income of $1.05 per share. By that measure, the company beat the mean estimate of 56 cents per share. It fell short of the average revenue estimate of $736.2 million.

Quoting Management: “We are pleased with our third quarter financial results, which included a significant improvement in our group insurance benefit ratio compared to the second quarter and continued strong earnings in our Asset Management segment,” said Greg Ness, chairman, president and chief executive officer. “We are making progress on our pricing actions to address the effects of the elevated group long term disability claims incidence and historically low interest rates in this challenging economic environment.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 5.6%.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 79 cents versus a mean estimate of net income of 84 cents per share.

Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from 95 cents per share to 86 cents. At $3.23 per share, the average estimate for the fiscal year has fallen from $3.76 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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