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What Awaits Cincinnati Financial (CINF) in Q3 Earnings?
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Cincinnati Financial Corporation (CINF - Free Report) is scheduled to report third-quarter 2022 earnings on Oct 31, after market close. The insurer delivered an earnings surprise in three of the last four quarters and missed in one, the average being 2.82%.
Factors to Note
In the third quarter, CINF’s property casualty premiums are likely to have gained from premium growth initiatives, increased property casualty agency new business written premiums, higher standard lines new business, higher premiums from Cincinnati Re.
Net investment income in the to-be-reported quarter is likely to have benefited from strong cash flow from operating activities, and higher dividend income and interest income.
The Zacks Consensus Estimate for investment income, net of expenses is pegged at $200 million, indicating an increase of 11.7% from the year-ago reported figure. We expect investment income to be $188.2 million.
The Zacks Consensus Estimate for third-quarter revenues stands at $2.1 billion, suggesting an increase of 12.4% from the prior-year quarter. We expect total revenues to be $2.3 billion.
Exposure to catastrophe events stemming from Hurricane Ian is likely to have weighed on underwriting profitability.
Cincinnati Financial estimates pre-tax catastrophe losses of nearly $252 million which includes $220 million from Hurricane Ian. While Cincinnati Financial’s commercial lines insurance segment is estimated to incur losses of around $46 million, personal lines insurance segment is anticipated to incur losses of nearly $69 million. Cincinnati Re and Cincinnati Global Underwriting Ltd. are projected to incur losses of around $112 million and $25 million respectively.
In the to-be-reported quarter, property casualty combined ratio is projected to be around 104% due to the anticipated losses and expenses. For the third quarter of 2022, net written premium growth is estimated to be nearly 14%.
The Zacks Consensus Estimate for the combined ratio at the Property and Casualty Insurance segment is pegged at 99, indicating a deterioration of 600 basis points from the year-ago reported figure of 93.
Total benefits and expenses are likely to have increased mainly due to higher insurance losses and contract holders’ benefits and higher underwriting, acquisition and insurance expenses.
Cincinnati Financial estimates third-quarter net loss in the range of $2.61 to $2.67 per share and also projects non-GAAP operating income in the range of 70 cents to 76 cents per share.
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 71 cents, indicating a decrease of 44.5% from the prior-year quarter. We expect the bottom line to be $2.13 per share for the to-be-reported quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Cincinnati Financial this time around. This is because the stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. This is not the case as you can see below.
Earnings ESP: Cincinnati Financial has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at 71 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cincinnati Financial Corporation Price and EPS Surprise
Here are three other insurance stocks you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
EverQuote, Inc. (EVER - Free Report) has an Earnings ESP of +4.88% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at a loss of 41 cents, implying a decline of 127.8% from the figure reported in the year-ago quarter.
EverQuote beat earnings estimates in three of the last four reported quarters while missing the same in one.
Trean Insurance Group, Inc. has an Earnings ESP of +11.11% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 9 cents, indicating a decrease of 40% from the year-ago reported figure.
TIG beat earnings estimates in one of the last four reported quarters while missing the same in the other two and matched in one.
Enact Holdings, Inc. (ACT - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings stands at 89 cents, indicating an increase of 5.9% from the year-ago reported figure.
Enact Holdings’ earnings beat estimates in each of the four trailing quarters.
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What Awaits Cincinnati Financial (CINF) in Q3 Earnings?
Cincinnati Financial Corporation (CINF - Free Report) is scheduled to report third-quarter 2022 earnings on Oct 31, after market close. The insurer delivered an earnings surprise in three of the last four quarters and missed in one, the average being 2.82%.
Factors to Note
In the third quarter, CINF’s property casualty premiums are likely to have gained from premium growth initiatives, increased property casualty agency new business written premiums, higher standard lines new business, higher premiums from Cincinnati Re.
Net investment income in the to-be-reported quarter is likely to have benefited from strong cash flow from operating activities, and higher dividend income and interest income.
The Zacks Consensus Estimate for investment income, net of expenses is pegged at $200 million, indicating an increase of 11.7% from the year-ago reported figure. We expect investment income to be $188.2 million.
The Zacks Consensus Estimate for third-quarter revenues stands at $2.1 billion, suggesting an increase of 12.4% from the prior-year quarter. We expect total revenues to be $2.3 billion.
Exposure to catastrophe events stemming from Hurricane Ian is likely to have weighed on underwriting profitability.
Cincinnati Financial estimates pre-tax catastrophe losses of nearly $252 million which includes $220 million from Hurricane Ian. While Cincinnati Financial’s commercial lines insurance segment is estimated to incur losses of around $46 million, personal lines insurance segment is anticipated to incur losses of nearly $69 million. Cincinnati Re and Cincinnati Global Underwriting Ltd. are projected to incur losses of around $112 million and $25 million respectively.
In the to-be-reported quarter, property casualty combined ratio is projected to be around 104% due to the anticipated losses and expenses. For the third quarter of 2022, net written premium growth is estimated to be nearly 14%.
The Zacks Consensus Estimate for the combined ratio at the Property and Casualty Insurance segment is pegged at 99, indicating a deterioration of 600 basis points from the year-ago reported figure of 93.
Total benefits and expenses are likely to have increased mainly due to higher insurance losses and contract holders’ benefits and higher underwriting, acquisition and insurance expenses.
Cincinnati Financial estimates third-quarter net loss in the range of $2.61 to $2.67 per share and also projects non-GAAP operating income in the range of 70 cents to 76 cents per share.
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 71 cents, indicating a decrease of 44.5% from the prior-year quarter. We expect the bottom line to be $2.13 per share for the to-be-reported quarter.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for Cincinnati Financial this time around. This is because the stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. This is not the case as you can see below.
Earnings ESP: Cincinnati Financial has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at 71 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cincinnati Financial Corporation Price and EPS Surprise
Cincinnati Financial Corporation price-eps-surprise | Cincinnati Financial Corporation Quote
Zacks Rank: Cincinnati Financial carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three other insurance stocks you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
EverQuote, Inc. (EVER - Free Report) has an Earnings ESP of +4.88% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at a loss of 41 cents, implying a decline of 127.8% from the figure reported in the year-ago quarter.
EverQuote beat earnings estimates in three of the last four reported quarters while missing the same in one.
Trean Insurance Group, Inc. has an Earnings ESP of +11.11% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 9 cents, indicating a decrease of 40% from the year-ago reported figure.
TIG beat earnings estimates in one of the last four reported quarters while missing the same in the other two and matched in one.
Enact Holdings, Inc. (ACT - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings stands at 89 cents, indicating an increase of 5.9% from the year-ago reported figure.
Enact Holdings’ earnings beat estimates in each of the four trailing quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.