Torchmark (TMK) Q2 Earnings: Disappointment In The Cards?
Zacks Investment Research | Jul 23, 2017 09:39PM ET
Torchmark Corporation (NYSE:TMK) is slated to report second-quarter 2017 results on Jul 26, after the market closes. Last quarter, the company delivered a positive earnings surprise of 0.88%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
Torchmark is likely to report higher administrative expenses in the soon-to-be-reported quarter, mainly driven by higher pension costs due to the required implementation of a new mortality table and further investments in IT systems. For 2017, the company anticipates administrative expenses to increase 5% and be around 6.3% of premium.
The company has also likely experienced a rise in total benefits and expenses in the second quarter.
In addition, the company is likely to witness a lower insurance underwriting income in the second quarter, owing to higher administrative expenses.
However, the life insurer is likely to report bottom-line growth in the second quarter on the back of higher premiums from the Life and Health segments. Notably, the company projects a net operating income from continuing operations per share between $4.63 and $4.77 in 2017. The $4.70 per share midpoint reflects an increase of 3 cents from the midpoint of the life insurer’s previous guidance.
Further, the company has likely displayed a higher excess investment income in the soon-to-be-reported quarter.
With respect to the surprise trend, the company delivered positive surprises in the trailing four quarters with an average beat of 2.01%.
Torchmark Corporation Price and EPS Surprise
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