Genworth Financial (GNW) Q3 Earnings: A Surprise In Store?
Zacks Investment Research | Oct 31, 2016 10:47PM ET
Genworth Financial, Inc. (NYSE:GNW) is set to report third-quarter 2016 results on Nov 3, after the market closes. Last quarter, the company posted a positive earnings surprise of 19.05%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
Genworth Financial is likely to witness growth in its U.S. Mortgage Insurance business in the to-be-reported quarter. Improved new insurance written and increasing levels of new business written are expected to be the growth drivers.
Moreover, Life Insurance results have likley improved in the third quarter. Better results are expected at Long-Term Care insurance, owing to the benefits derived from premium rate action approvals and stable claims experience.
In addition, the company has likely experienced lower U.S. Life Insurance and headquarters expenses in the to-be-reported quarter.
However, Genworth is estimated to have increased LTC claim reserves by $400–450 million, which might lower third-quarter earnings by $260–300 million.
Also, a sustained low interest rate environment, have likely weighed on investment results.
With respect to surprise trend, the company delivered positive surprises in two of the last four quarters, but with an average miss of 38.85%.
GENWORTH FINL Price and EPS Surprise
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