Cincinnati Financial Corporation (CINF - Free Report) is slated to report first-quarter 2020 results on Apr 27, after the closing bell.
Q1 Earnings & Revenue Expectations
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.6 billion, suggesting an improvement of 4.5% from the prior-year quarter.
The same for earnings per share is pegged at $1.10, indicating growth of 4.8% from the year-ago reported figure.
Key Factors to Consider
Cincinnati’s first-quarter performance is likely to have benefited from higher premiums, which is likely to have been driven by premium growth initiatives, renewal price increases and a higher level of insured exposures.
Strength in net investment income is likely have bolstered Cincinnati’s performance in the to-be-reported quarter. Strong cash flows are also likely to have bolstered the company’s investment income in the first quarter.
Moreover, the insurer’s first-quarter results are likely to reflect declining claims amid a reduction in the number of vehicles plying on roads due to the COVID-19 pandemic. The reduction in travel has led to lower claims, which is likely to have benefited Cincinnati’s performance in the to-be-reported quarter.
Efficient pricing decisions across all lines of business are likely to have benefited the company’s underwriting results in the to-be-reported quarter.
However, increased expenses due to higher underwriting expenses, and loss and loss expenses are likely to have impacted the first-quarter performance.
Earnings Surprise History
The company has a trailing four-quarter positive earnings surprise of 17.86%, on average.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Cincinnati this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Cincinnati has an Earnings ESP of +1.67%. This is because the Most Accurate Estimate of $1.12 is pegged higher than the Zacks Consensus Estimate of $1.10. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cincinnati carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some stocks worth considering from the insurance space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +2.18% and a Zacks Rank #2. The company is scheduled to release first-quarter 2020 earnings on May 5.
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank of 3, at present. The company is slated to announce first-quarter 2020 earnings on May 5.
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank #3. The company is slated to announce first-quarter 2020 earnings on May 4.
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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.
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Cincinnati Financial Corporation (CINF - Free Report) is slated to report first-quarter 2020 results on Apr 27, after the closing bell.
Q1 Earnings & Revenue Expectations
The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.6 billion, suggesting an improvement of 4.5% from the prior-year quarter.
The same for earnings per share is pegged at $1.10, indicating growth of 4.8% from the year-ago reported figure.
Key Factors to Consider
Cincinnati’s first-quarter performance is likely to have benefited from higher premiums, which is likely to have been driven by premium growth initiatives, renewal price increases and a higher level of insured exposures.
Strength in net investment income is likely have bolstered Cincinnati’s performance in the to-be-reported quarter. Strong cash flows are also likely to have bolstered the company’s investment income in the first quarter.
Moreover, the insurer’s first-quarter results are likely to reflect declining claims amid a reduction in the number of vehicles plying on roads due to the COVID-19 pandemic. The reduction in travel has led to lower claims, which is likely to have benefited Cincinnati’s performance in the to-be-reported quarter.
Efficient pricing decisions across all lines of business are likely to have benefited the company’s underwriting results in the to-be-reported quarter.
However, increased expenses due to higher underwriting expenses, and loss and loss expenses are likely to have impacted the first-quarter performance.
Earnings Surprise History
The company has a trailing four-quarter positive earnings surprise of 17.86%, on average.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Cincinnati this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Cincinnati has an Earnings ESP of +1.67%. This is because the Most Accurate Estimate of $1.12 is pegged higher than the Zacks Consensus Estimate of $1.10. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Cincinnati carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some stocks worth considering from the insurance space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +2.18% and a Zacks Rank #2. The company is scheduled to release first-quarter 2020 earnings on May 5.
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank of 3, at present. The company is slated to announce first-quarter 2020 earnings on May 5.
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank #3. The company is slated to announce first-quarter 2020 earnings on May 4.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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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