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CNO (CNO) Up 5.7% Since Last Earnings Report: Can It Continue?
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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 5.7% 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 its most recent earnings report in order to get a better handle on the important catalysts.
CNO Financial Q2 Earnings Top Estimates, Revenues Up Y/Y
CNO Financial reported second-quarter 2021 adjusted earnings per share of 66 cents, which outpaced the Zacks Consensus Estimate of 54 cents by 22.2%. The bottom line improved 20% year over year.
The company’s results benefited from higher revenues, deferred care across its health lines and strong alternative investment performances, partly offset by escalating costs.
Total revenues of $1.1 billion rose 5.8% year over year in the quarter under review attributable to improved insurance policy income, increased net investment income, and higher fee revenue and other income.
Quarterly Operational Update
Total insurance policy income inched up 0.8% year over year to $630.5 million in the second quarter.
Net investment income grew 18.9% year over year.
Annuity collected premiums climbed 42% year over year to $344.3 million in the quarter under review.
New annualized premiums for life and health products of $93.8 million advanced 35% from the year-ago period.
Total benefits and expenses increased 6.9% year over year to $971.5 million primarily due to rise in insurance policy benefits.
Financial Update
CNO Financial exited the second quarter with unrestricted cash and cash equivalents of $652.5 million, which declined 30.4% from 2020-end level. Total assets as of Jun 30, 2021 came in at $35.5 billion, which inched up 0.5% from the figure as of Dec 31, 2020.
At June-end, total shareholders’ equity dipped 2.9% from the 2020-end level to $5.3 billion.
Book value per share increased 24% year over year to $41.24 in the second quarter.
As of Jun 30, 2021, debt-to-capital of 17.6% came in higher than the 2020-end figure of 17.2%.
Share Repurchase and Dividend Update
The company rewarded shareholders with share buybacks to the tune of $87.4 million and dividends worth $17.4 million during the second quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 10.91% due to these changes.
VGM Scores
Currently, 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 quintile 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. It comes with little surprise CNO has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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CNO (CNO) Up 5.7% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for CNO Financial (CNO - Free Report) . Shares have added about 5.7% 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 its most recent earnings report in order to get a better handle on the important catalysts.
CNO Financial Q2 Earnings Top Estimates, Revenues Up Y/Y
CNO Financial reported second-quarter 2021 adjusted earnings per share of 66 cents, which outpaced the Zacks Consensus Estimate of 54 cents by 22.2%. The bottom line improved 20% year over year.
The company’s results benefited from higher revenues, deferred care across its health lines and strong alternative investment performances, partly offset by escalating costs.
Total revenues of $1.1 billion rose 5.8% year over year in the quarter under review attributable to improved insurance policy income, increased net investment income, and higher fee revenue and other income.
Quarterly Operational Update
Total insurance policy income inched up 0.8% year over year to $630.5 million in the second quarter.
Net investment income grew 18.9% year over year.
Annuity collected premiums climbed 42% year over year to $344.3 million in the quarter under review.
New annualized premiums for life and health products of $93.8 million advanced 35% from the year-ago period.
Total benefits and expenses increased 6.9% year over year to $971.5 million primarily due to rise in insurance policy benefits.
Financial Update
CNO Financial exited the second quarter with unrestricted cash and cash equivalents of $652.5 million, which declined 30.4% from 2020-end level.
Total assets as of Jun 30, 2021 came in at $35.5 billion, which inched up 0.5% from the figure as of Dec 31, 2020.
At June-end, total shareholders’ equity dipped 2.9% from the 2020-end level to $5.3 billion.
Book value per share increased 24% year over year to $41.24 in the second quarter.
As of Jun 30, 2021, debt-to-capital of 17.6% came in higher than the 2020-end figure of 17.2%.
Share Repurchase and Dividend Update
The company rewarded shareholders with share buybacks to the tune of $87.4 million and dividends worth $17.4 million during the second quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision. The consensus estimate has shifted 10.91% due to these changes.
VGM Scores
Currently, 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 quintile 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. It comes with little surprise CNO has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.