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Why Is CNO (CNO) Up 2.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for CNO Financial (CNO - Free Report) . Shares have added about 2.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CNO due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
CNO Financial's Q1 Earnings Beat Estimates, Fall Y/Y
CNO Financial first-quarter 2021 adjusted earnings per share of 55 cents beat the Zacks Consensus Estimate by 12.2% on the back of higherrevenues. However, the bottom line declined 5.2% year over year.
The company’s total revenues soared 40.3% year over year to $1 billion, driven by higher insurance policy income, change in allowance for credit losses and other-than-temporary impairment losses, etc. The top line also outpaced the consensus mark by 18.4%.
Quarterly Operational Update
Annuity collected premiums increased 11% year over year to $325.4 million.
New annualized premiums for life and health products were $88.7 million, up 4% from the year-ago period.
Net investment income for the first quarter was up 99% year over year.
Total insurance policy income inched up 1% year over year to $632.4 million.
Total benefits and expenses rose 3.5% year over year to $816 million, primarily due to operating costs and expenses and amortization costs.
Financial Update
Unrestricted cash and cash equivalents were $324 million as of Mar 31, 2021, down 16.5% from the level at 2020 end.
As of Mar 31, 2021, total assets were $34.6 billion, down 1.9% from the level at 2020 end.
Total shareholders’ equity of $4.8 billion as of Mar 31, 2021 decreased 11.4% from the 2020-end level.
Debt-to-capital was 19% as of Mar 31, 2021 compared with 17.2% at 2020 end.
Securities Repurchase and Dividend Update
In the first quarter, the company returned $116.3 million in the form of share buybacks worth $100 million and dividends of $16.3 million.
Business Update
The company closed its buyout of DirectPath, LLC, which is a leading national provider of employee benefits management services to both employers and employees.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, CNO has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, CNO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is CNO (CNO) Up 2.1% Since Last Earnings Report?
It has been about a month since the last earnings report for CNO Financial (CNO - Free Report) . Shares have added about 2.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CNO due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
CNO Financial's Q1 Earnings Beat Estimates, Fall Y/Y
CNO Financial first-quarter 2021 adjusted earnings per share of 55 cents beat the Zacks Consensus Estimate by 12.2% on the back of higherrevenues. However, the bottom line declined 5.2% year over year.
The company’s total revenues soared 40.3% year over year to $1 billion, driven by higher insurance policy income, change in allowance for credit losses and other-than-temporary impairment losses, etc. The top line also outpaced the consensus mark by 18.4%.
Quarterly Operational Update
Annuity collected premiums increased 11% year over year to $325.4 million.
New annualized premiums for life and health products were $88.7 million, up 4% from the year-ago period.
Net investment income for the first quarter was up 99% year over year.
Total insurance policy income inched up 1% year over year to $632.4 million.
Total benefits and expenses rose 3.5% year over year to $816 million, primarily due to operating costs and expenses and amortization costs.
Financial Update
Unrestricted cash and cash equivalents were $324 million as of Mar 31, 2021, down 16.5% from the level at 2020 end.
As of Mar 31, 2021, total assets were $34.6 billion, down 1.9% from the level at 2020 end.
Total shareholders’ equity of $4.8 billion as of Mar 31, 2021 decreased 11.4% from the 2020-end level.
Debt-to-capital was 19% as of Mar 31, 2021 compared with 17.2% at 2020 end.
Securities Repurchase and Dividend Update
In the first quarter, the company returned $116.3 million in the form of share buybacks worth $100 million and dividends of $16.3 million.
Business Update
The company closed its buyout of DirectPath, LLC, which is a leading national provider of employee benefits management services to both employers and employees.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, CNO has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, CNO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.