Unum Group ( UNM Quick Quote UNM - Free Report) is slated to report fourth-quarter 2020 results on Feb 4, after market close. The company delivered an earnings surprise in one of the three reported quarters of 2020. Factors to Note
The Unum U.S. segment is likely to have benefited from disciplined sales trends, strong persistency in group lines, and growth of new product lines like dental and vision. The long-term disability business is likely to have retained strong operational momentum. Nonetheless, increase in unemployment and high claims due to the pandemic are likely to have been a drag. The Zacks Consensus Estimate for fourth-quarter premium income at the Unum U.S. segment is pegged at $1.5 billion, suggesting a decline of 0.9% from the prior-year reported figure.
Colonial Life is also likely to have been impacted by the pandemic. However, growth in in-force block, telephonic enrollment and the self-service platform is likely have limited the downside. The Zacks Consensus Estimate for fourth-quarter premium income at the Colonial Life segment is pegged at $424 million, indicating a decline of 0.2% from the prior-year level. Lower interest rate environment and fluctuations in miscellaneous investment income are likely to have weighed on net investment income. The Zacks Consensus Estimate for the same is pegged at $596 million, indicating a 3.2% decline from the prior-year quarter. Expenses are likely to have increased due to higher interest and debt expense, compensation and other costs. The Zacks Consensus Estimate for earnings per share is pegged at $1.19, indicating a decline of 15.6% from the year-ago reported figure. Quantitative Model Prediction
Our proven model does not conclusively predict an earnings beat for Unum Group 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: It has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at $1.19. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Zacks Rank: Unum Group currently carries a Zacks Rank #4 (Sell). Stocks to Consider
Some stocks worth considering from the insurance space that have the perfect mix of elements to surpass earnings estimates in the upcoming quarterly releases are as follows:
Aflac ( AFL Quick Quote AFL - Free Report) has an Earnings ESP of +0.96% and a Zacks Rank #3. You can see . the complete list of today’s Zacks #1 Rank stocks here Sun Life Financial ( SLF Quick Quote SLF - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank of 2, at present. Cigna Corporation ( CI Quick Quote CI - Free Report) has an Earnings ESP of +1.91% and a Zacks Rank #3. The Hottest Tech Mega-Trend of All
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