Torchmark Earnings: What Investors Should Watch

Torchmark (NYSE:TMK) will report earnings after markets close on Wednesday, July 24th. Torchmark Corporation is an insurance and financial services holding company. The Company’s subsidiaries offer life and health insurance, and annuities. Life products include traditional and interest sensitive whole life insurance as well as term life insurance. Health products include Medicare supplement, cancer, accident, long-term care, and limited hospital and surgical coverages.

Here is your Cheat Sheet to Torchmark Earnings:

Earnings Expectations: Analysts expect earnings of $1.40 per share on revenues of $952.83 million. Currently, the company’s P/E ratio stands at 12.44.

Analyst Trends:

Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.43 and has not changed. For the current year, the average estimate is a profit of $5.68, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Torchmark has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 3,327 3,222 3,368 3,377 3,590
Diluted EPS ($) 3.41 3.25 4.20 4.72 5.41

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 808.54 877.10 928.70 875.38
Diluted EPS ($) 1.32 1.36 1.58 1.27

Past Performance:
Torchmark has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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