Torchmark Corporation is scheduled to report second-quarter 2016 results after the closing bell on Jul 27. Last quarter, this company delivered a 0.93% positive earnings surprise. Let’s see how things are shaping up for this announcement.
Factors Influencing this Past Quarter
The second quarter is expected to have witnessed improved premiums owing to a better performing American Income Exclusive Agency. Management focus on agent training programs and financial incentives as well as the introduction of home-office and webinar training programs should enhance agent retention and sales activity, thereby driving premium growth.
Riding on agent count, life sales is likely to have improved.
Contribution from the acquisition of Family Heritage Life Insurance Company is likely to improve Health sales in the to-be-reported quarter.
Continued share buyback must have given a boost to the bottom line.
However, higher administrative expenses might weight on margin expansion and the bottom line. Though excess investment income is expected to improve, Part D will remain a drag on the desired upside.
With respect to the surprise trend, Torchmark surpassed expectations in two of the last four quarters.
The company’s share price has been fluctuating over the last few days. We wait to see how the stock reacts to the quarter’s results.
Earnings Whispers
Our proven model does not conclusively show that Torchmark will beat the Zacks Consensus Estimate in the second quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or at least 2 (Buy) or 3 (Hold) for this to happen. But this is not the case here as elaborated below.
Zacks ESP: Torchmark has 0.00% Earnings ESP. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.10 per share.
Zacks Rank: Torchmark has a Zacks Rank #3, which increases the predictive power of ESP. However, a 0.00% Earnings ESP makes surprise prediction difficult.
The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are some companies you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
The All State Corporation (ALL - Free Report) has an Earnings ESP of +3.7% and a Zacks Rank #3. The company is likely to report second-quarter earnings results on Aug 3.
Manulife Financial Corporation (MFC - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #3. The company is slated to report second-quarter earnings results on Aug 4.
Sun Life Financial Inc. (SLF - Free Report) has an Earnings ESP of +1.47% and a Zacks Rank #2. The company is set to report second-quarter earnings results on Aug 10.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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Torchmark Corporation is scheduled to report second-quarter 2016 results after the closing bell on Jul 27. Last quarter, this company delivered a 0.93% positive earnings surprise. Let’s see how things are shaping up for this announcement.
Factors Influencing this Past Quarter
The second quarter is expected to have witnessed improved premiums owing to a better performing American Income Exclusive Agency. Management focus on agent training programs and financial incentives as well as the introduction of home-office and webinar training programs should enhance agent retention and sales activity, thereby driving premium growth.
Riding on agent count, life sales is likely to have improved.
Contribution from the acquisition of Family Heritage Life Insurance Company is likely to improve Health sales in the to-be-reported quarter.
Continued share buyback must have given a boost to the bottom line.
However, higher administrative expenses might weight on margin expansion and the bottom line. Though excess investment income is expected to improve, Part D will remain a drag on the desired upside.
With respect to the surprise trend, Torchmark surpassed expectations in two of the last four quarters.
The company’s share price has been fluctuating over the last few days. We wait to see how the stock reacts to the quarter’s results.
Earnings Whispers
Our proven model does not conclusively show that Torchmark will beat the Zacks Consensus Estimate in the second quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy) or at least 2 (Buy) or 3 (Hold) for this to happen. But this is not the case here as elaborated below.
Zacks ESP: Torchmark has 0.00% Earnings ESP. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.10 per share.
Zacks Rank: Torchmark has a Zacks Rank #3, which increases the predictive power of ESP. However, a 0.00% Earnings ESP makes surprise prediction difficult.
The Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Stocks to Consider
Here are some companies you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
The All State Corporation (ALL - Free Report) has an Earnings ESP of +3.7% and a Zacks Rank #3. The company is likely to report second-quarter earnings results on Aug 3.
Manulife Financial Corporation (MFC - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #3. The company is slated to report second-quarter earnings results on Aug 4.
Sun Life Financial Inc. (SLF - Free Report) has an Earnings ESP of +1.47% and a Zacks Rank #2. The company is set to report second-quarter earnings results on Aug 10.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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