Hartford Financial (HIG) Q2 Earnings: What's In The Offing?
Zacks Investment Research | Jul 24, 2017 09:25PM ET
The Hartford Financial Services Group, Inc. (NYSE:HIG) will release second-quarter 2017 financial results on Jul 27, after the closing bell.
Last quarter, the company witnessed a negative earnings surprise of 1.96%. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
We expect Hartford Financial’s results to be supported by improved performance of its Personal Auto business.
Commercial Lines in small and middle markets are likely to perform well, boosting both top-line and bottom-line, continuing the previous quarter’s trend.
We also expect the Group Benefit and Mutual Funds segment to deliver a solid performance, reflecting the company’s claims expertise and the improvements made in its book of business over the years.
Hartford Financial’s strategic investment in products, distribution, data and analytics, as well as digital capabilities, aimed at customer acquisition and retention, are likely to contribute to revenue growth.
The company is also expected to enhance shareholders’ value during the quarter through share repurchases, which might impact the bottom-line by limiting the outstanding share count.
However, higher auto loss costs are expected to have adversely affected underwriting margins.
In addition, as the company is a multi-line insurer, it incurs considerable catastrophe losses. This is also likely to adversely impact earnings in the quarter.
Earnings Whispers
Our proven model does not conclusively show that Hartford Financial is likely to beat on earnings in the quarter. That is because a stock needs to have both a positive Original post
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