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The Zacks Consensus Estimate for Hartford Financial’s fourth-quarter earnings of $1.52 per share implies a 13.6% decrease from the prior-year quarter’s reported number. The consensus estimate for sales of $3.5 billion suggests a 6.7% increase from the year-ago period’s reported figure.
Factors at Play for Q4 Results
Hartford Financial’s revenues are likely to have gained from higher contribution by its Commercial Lines, Hartford Funds and Corporate segments. HIG is likely to have continued witnessing strong sales in the to-be-reported quarter.
The Zacks Consensus Estimate for written premiums from the Commercial Lines segment stands at $2.37 billion, indicating an upside of 8.2% from the year-ago quarter’s tally. The consensus mark for core earnings from Commercial Lines business suggests an upside of 8.1% from the year-ago quarter’s reported number.
The consensus mark for total revenues of Hartford Funds and Group Benefits indicates an upside of 13.2% and 1.9% each from the year-ago quarter’s reported figures, respectively.
However, the Personal Lines segment is likely to have recorded lower earned premiums, which in turn, might have dented its revenue base.
Hartford Financial is likely to have continued witnessing pressure on the portfolio yield in the fourth quarter.
The segment might have suffered a soft underlying underwriting gain and less favorable PYD. The consensus mark for core earnings from the Personal Lines segment indicates a downside of 64.6% from the year-ago quarter’s actuals.
HIG is also expected to have witnessed a significant decline in new business in the middle and large commercial markets, which might have affected its overall performance.
Margins are likely to have been depressed by steep expenses despite its cost-curbing measures. HIG’s results are also likely to reflect a fall in favorable property and casualty (P&C) prior accident year development (PYD) core earnings, deterioration of the underlying Personal Lines loss ratio, excess mortality rate and elevated insurance operating costs along with other expenses in its P&C and Group Benefits businesses.
Earnings Surprise History
HIG boasts an encouraging earnings surprise record. The bottom line beat estimates in three of the last four quarters (missing the mark in one), the average surprise being 34.94%. This is depicted in the chart below:
The Hartford Financial Services Group, Inc. Price and EPS Surprise
Our proven model doesn’t predict an earnings beat for Hartford Financial this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Hartford Financial has an Earnings ESP of -1.76%. This is because the Most Accurate Estimate is pegged at $1.50, lower than the Zacks Consensus Estimate of $1.52. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Rank: Hartford Financial currently carries a Zacks Rank #2.
Highlights of Q3 Earnings
Hartford Financial reported third-quarter 2021 adjusted operating earnings of $1.26 per share, which surpassed the Zacks Consensus Estimate by 55.6%. However, the bottom line declined 14% year over year.
Results benefited from an uptick in net investment income, lower COVID-19 related losses, an improved underlying ex-COVID-19 Commercial Lines loss ratio and a rise in Commercial Lines earned premium. However, the same was partially offset by a fall in favorable property and casualty (P&C) prior accident year development (PYD) core earnings, deterioration of the underlying Personal Lines loss ratio, excess mortality, elevated insurance operating costs and other expenses in P&C and Group Benefits business.
Stocks to Consider
Some stocks worth considering from the finance sector with the perfect mix of elements to surpass estimates in the upcoming releases are as follows:
Arch Capital Group Ltd. (ACGL - Free Report) currently has a Zacks Rank of 2 and an Earnings ESP of +1.48%.
American Equity Investment Life Holding Company is currently Zacks #3 Ranked and has an Earnings ESP of +2.86%.
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +4.88% and is presently a #3 Ranked player.
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What's in Store for Hartford Financial (HIG) Q4 Earnings?
The Hartford Financial Services Group, Inc. (HIG - Free Report) will release fourth-quarter 2021 financial results on Feb 3, after the closing bell.
Let’s see how things have shaped up prior to the fourth-quarter earnings announcement.
Q4 Earnings & Revenue Expectations
The Zacks Consensus Estimate for Hartford Financial’s fourth-quarter earnings of $1.52 per share implies a 13.6% decrease from the prior-year quarter’s reported number. The consensus estimate for sales of $3.5 billion suggests a 6.7% increase from the year-ago period’s reported figure.
Factors at Play for Q4 Results
Hartford Financial’s revenues are likely to have gained from higher contribution by its Commercial Lines, Hartford Funds and Corporate segments. HIG is likely to have continued witnessing strong sales in the to-be-reported quarter.
The Zacks Consensus Estimate for written premiums from the Commercial Lines segment stands at $2.37 billion, indicating an upside of 8.2% from the year-ago quarter’s tally. The consensus mark for core earnings from Commercial Lines business suggests an upside of 8.1% from the year-ago quarter’s reported number.
The consensus mark for total revenues of Hartford Funds and Group Benefits indicates an upside of 13.2% and 1.9% each from the year-ago quarter’s reported figures, respectively.
However, the Personal Lines segment is likely to have recorded lower earned premiums, which in turn, might have dented its revenue base.
Hartford Financial is likely to have continued witnessing pressure on the portfolio yield in the fourth quarter.
The segment might have suffered a soft underlying underwriting gain and less favorable PYD. The consensus mark for core earnings from the Personal Lines segment indicates a downside of 64.6% from the year-ago quarter’s actuals.
HIG is also expected to have witnessed a significant decline in new business in the middle and large commercial markets, which might have affected its overall performance.
Margins are likely to have been depressed by steep expenses despite its cost-curbing measures. HIG’s results are also likely to reflect a fall in favorable property and casualty (P&C) prior accident year development (PYD) core earnings, deterioration of the underlying Personal Lines loss ratio, excess mortality rate and elevated insurance operating costs along with other expenses in its P&C and Group Benefits businesses.
Earnings Surprise History
HIG boasts an encouraging earnings surprise record. The bottom line beat estimates in three of the last four quarters (missing the mark in one), the average surprise being 34.94%. This is depicted in the chart below:
The Hartford Financial Services Group, Inc. Price and EPS Surprise
The Hartford Financial Services Group, Inc. price-eps-surprise | The Hartford Financial Services Group, Inc. Quote
Here is what our quantitative model predicts:
What the Quantitative Model States
Our proven model doesn’t predict an earnings beat for Hartford Financial this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of a positive surprise, which is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Hartford Financial has an Earnings ESP of -1.76%. This is because the Most Accurate Estimate is pegged at $1.50, lower than the Zacks Consensus Estimate of $1.52. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Rank: Hartford Financial currently carries a Zacks Rank #2.
Highlights of Q3 Earnings
Hartford Financial reported third-quarter 2021 adjusted operating earnings of $1.26 per share, which surpassed the Zacks Consensus Estimate by 55.6%. However, the bottom line declined 14% year over year.
Results benefited from an uptick in net investment income, lower COVID-19 related losses, an improved underlying ex-COVID-19 Commercial Lines loss ratio and a rise in Commercial Lines earned premium. However, the same was partially offset by a fall in favorable property and casualty (P&C) prior accident year development (PYD) core earnings, deterioration of the underlying Personal Lines loss ratio, excess mortality, elevated insurance operating costs and other expenses in P&C and Group Benefits business.
Stocks to Consider
Some stocks worth considering from the finance sector with the perfect mix of elements to surpass estimates in the upcoming releases are as follows:
Arch Capital Group Ltd. (ACGL - Free Report) currently has a Zacks Rank of 2 and an Earnings ESP of +1.48%.
American Equity Investment Life Holding Company is currently Zacks #3 Ranked and has an Earnings ESP of +2.86%.
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +4.88% and is presently a #3 Ranked player.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.