StanCorp Financial Group Inc. Earnings Cheat Sheet: Beats the Street on Profit Rise

StanCorp Financial Group Inc. (NYSE:SFG) reported net income above Wall Street’s expectations for the third quarter. 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 Earnings Cheat Sheet for the Third Quarter

Results: Net income for StanCorp Financial Group Inc. rose to $47.5 million ($1.07 per share) vs. $46.2 million (99 cents per share) in the same quarter a year earlier. This marks a rise of 2.8% from the year earlier quarter.

Revenue: Rose 5.6% to $723.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: SFG beat the mean analyst estimate of 66 cents per share. Analysts were expecting revenue of $721.9 million.

Quoting Management: “Our third quarter results reflected improved claims experience in our group life insurance business and pockets of improvement in our group long term disability insurance business compared to the first half of this year,” said Greg Ness, president and chief executive officer. “We expect the group disability insurance claims incidence to continue to be elevated while the economy remains weak and until the effects of our pricing actions take hold. Insurance Services premium growth was strong. We are confident in our underwriting methodologies and pricing actions and we will continue to focus on disciplined growth in this challenging economic environment.”

Key Stats:

Last quarter’s profit increase breaks a streak of four consecutive quarters of year-over-year profit drops. In the second quarter, net income fell 54.3% from the year earlier, while the figure fell 32.2% in the first quarter, 13.3% in the fourth quarter of the last fiscal year and 22.9% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 2.1% to $706 million in the second quarter. The figure rose 5.7% in the first quarter from the year earlier and climbed 3.1% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 61 cents versus a mean estimate of net income of $1.02 per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 92 cents per share to 76 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $2.76 per share, down from $3.43 ninety days ago.

Competitors to Watch: MetLife, Inc. (NYSE:MET), CNO Financial Group, Inc. (NYSE:CNO), Protective Life Corp. (NYSE:PL), Independence Holding Co. (NYSE:IHC), Kansas City Life Insurance Co (NASDAQ:KCLI), Lincoln National Corp. (NYSE:LNC), Presidential Life Corp (NASDAQ:PLFE), Delphi Financial Group, Inc. (NYSE:DFG), Torchmark Corporation (NYSE:TMK), and Prudential Financial, Inc. (NYSE:PRU).

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(Source: Xignite Financials)

 

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