What's In The Cards For The Hartford (HIG) Earnings In Q2?
Zacks Investment Research | Jul 28, 2019 11:04PM ET
The Hartford Financial Services Group, Inc. (NYSE:HIG) will release second-quarter 2019 earnings results on Aug 1, after the closing bell.
In the last reported quarter, the company came up with adjusted operating earnings of $1.39 per share, beating the Zacks Consensus Estimate by 12%. Moreover, the bottom line improved 9.4% year over year. This upside was primarily backed by stronger core earnings in Group Benefits and lower Corporate core losses.
The company also flaunts an impressive surprise history, the average four-quarter beat being 13.4%.
Let’s see, how things are shaping up for this announcement.
Q2 Expectations
The company completed the buyout of The Navigators Group, Inc. on May 23, 2019 for a total cash value of $2.2 billion, which is likely to have weighed down its margins because of acquisition related expenses.
The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.11, indicating nearly 1.8% dip from the year-ago reported figure. This downside could have been due to deterioration in Worker’s Compensation and higher expenses on account of investments in operations and technology. The Personal Lines segment is also expected to have suffered in the to-be-reported quarter due to higher auto liability loss costs.
Lower share count owing to continued buybacks should provide an additional boost to the bottom line.
Hartford Financial is likely to have gained from its strategic acquisitions and alliances in the to-be-reported quarter. Its net investment income, which has been increasing over the past few years, might have witnessed an uptick in the second quarter as well. Moreover, rising investment income should contribute to revenue growth.
Additionally, the company is expected to have been successful in reducing its debt level in the second quarter of 2019.
What the Quantitative Model States
Our proven model conclusively shows that Hartford Financial is likely to beat on earnings this quarter to be reported. This is because the stock hasthe right combination of a positive Original post
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