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Assurant (AIZ) to Report Q2 Earnings: What's in the Cards?

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Assurant, Inc. (AIZ - Free Report) is slated to report second-quarter 2020 results on Aug 4, after market close.

The company beat estimates in three of the last four quarters and missed in one, delivering an average surprise of 2.64%.

Factors at Play

Assurant’s second-quarter performance is likely to have benefited from solid results at Global Lifestyle, Housing business lines.

Global Lifestyle is likely to have benefited from expansion of partnerships with market leaders and new entrants, additions of new mobile subscribers, continued mobile growth in both new and existing programs and growth in Global Automotive.

Global Housing’s performance is likely to have been driven by superior customer platform, favorable non-catastrophe loss, and increased lender-placed income.

Global Preneed is expected to have benefited from continued growth within the business and lower mortality risk. However, the company expects pressure from lower yields on new sales amid the current interest rate environment.

All these factors combined are likely to have driven revenue improvement. The Zacks Consensus Estimate for revenues is pegged at $2.58 billion, indicating a 2.1% increase from the year-ago reported figure.

Higher policyholder benefits, amortization of deferred acquisition costs and value of business acquired and underwriting, general and administrative expenses are likely to have increased expenses in the second quarter.

For the to-be-reported quarter, the Zacks Consensus Estimate for the company’s earnings is pegged at $2.23, indicating a decline of 4.7% from the year-ago reported figure.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Assurant 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. But that’s not the case here.

Earnings ESP: Assurant has an Earnings ESP of -1.12%. This is because the Most Accurate Estimate is pegged at $2.20, lower than the Zacks Consensus Estimate of $2.23. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Assurant, Inc. Price and EPS Surprise

Zacks Rank: Assurant currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some stocks worth considering from the insurance sector with the apt combination of elements to surpass estimates this reporting cycle are as follows:

Prudential Financial, Inc. (PRU - Free Report) has an Earnings ESP of +0.73% and a Zacks Rank #3.

MetLife, Inc. (MET - Free Report) has an Earnings ESP of +2.51% and is a Zacks #3 Ranked stock.

Goosehead Insurance, Inc. (GSHD - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank #3.

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