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Will Cincinnati Financial (CINF) Beat Estimates in Q4 Earnings?
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Cincinnati Financial Corporation (CINF - Free Report) is scheduled to report fourth-quarter 2022 earnings on Feb 6, after market close. The insurer delivered an earnings surprise in three of the last four quarters and missed in one, the average being 0.70%.
Factors to Note
Growth initiatives, increased exposure, better pricing, increased property casualty agency and new business written premiums, higher standard lines new business and higher premiums from Cincinnati Re are likely to have aided premiums in the fourth quarter of 2022. We expect earned premiums to be $1.9 billion.
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. We expect investment income to be $196.1 million.
The Zacks Consensus Estimate for fourth-quarter revenues stands at $2.1 billion, suggesting an increase of 10.9% from the prior-year quarter. We expect total revenues to be $2 billion.
Exposure to catastrophe events stemming from Winter Storm Elliott is likely to have weighed on underwriting profitability.
Cincinnati Financial estimates pre-tax catastrophe losses of nearly $141 million, which includes $161 million from Winter Storm Elliott. While Cincinnati Financial’s Commercial Lines insurance segment is estimated to incur losses of around $100 million, the Personal Lines insurance segment is anticipated to incur losses of nearly $38 million. Cincinnati Re and Cincinnati Global Underwriting Ltd. are projected to incur losses of around $1 million, while the Excess and Surplus lines insurance segment is expected to incur loss of $2 million.
In the to-be-reported quarter, the property casualty combined ratio is projected to be around 95% due to anticipated losses and expenses. For the third quarter of 2022, net written premium growth is estimated to be nearly 10%.
The Zacks Consensus Estimate for the combined ratio at the Property and Casualty Insurance segment is pegged at 96, indicating a deterioration of 1200 basis points from the year-ago reported figure of 84.
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 fourth-quarter net income in the range of $6.37 to $6.43 per share. It projects non-GAAP operating income in the range of $1.24 to $1.30 per share.
The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at $1.26, indicating a decrease of 36.6% from the prior-year quarter. We expect the bottom line to be $1.20 per share for the to-be-reported quarter.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Cincinnati Financial this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat.
Earnings ESP: Cincinnati Financial has an Earnings ESP of +1.27%. This is because the Most Accurate Estimate of $1.26 is pegged higher that the Zacks Consensus Estimate of $1.25. 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 also have the right combination of elements to post an earnings beat:
American International Group (AIG - Free Report) has an Earnings ESP of +5.73% and a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at $1.19, implying a decline of 24.7% from the figure reported in the year-ago quarter.
AIG beat earnings estimates in three of the last four reported quarters while missing the same in one.
Aon Inc. (AON - Free Report) has an Earnings ESP of +1.52% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at $3.67, indicating a decrease of 1.1% from the year-ago reported figure.
AON beat earnings estimates in three of the last four reported quarters while missing the same in one.
CNO Financial Group (CNO - Free Report) has an Earnings ESP of +6.31% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings stands at 56 cents, indicating a decrease of 35.6% from the year-ago reported figure.
CNO beat earnings estimates in three of the last four reported quarters while missing the same in one.
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Will Cincinnati Financial (CINF) Beat Estimates in Q4 Earnings?
Cincinnati Financial Corporation (CINF - Free Report) is scheduled to report fourth-quarter 2022 earnings on Feb 6, after market close. The insurer delivered an earnings surprise in three of the last four quarters and missed in one, the average being 0.70%.
Factors to Note
Growth initiatives, increased exposure, better pricing, increased property casualty agency and new business written premiums, higher standard lines new business and higher premiums from Cincinnati Re are likely to have aided premiums in the fourth quarter of 2022. We expect earned premiums to be $1.9 billion.
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. We expect investment income to be $196.1 million.
The Zacks Consensus Estimate for fourth-quarter revenues stands at $2.1 billion, suggesting an increase of 10.9% from the prior-year quarter. We expect total revenues to be $2 billion.
Exposure to catastrophe events stemming from Winter Storm Elliott is likely to have weighed on underwriting profitability.
Cincinnati Financial estimates pre-tax catastrophe losses of nearly $141 million, which includes $161 million from Winter Storm Elliott. While Cincinnati Financial’s Commercial Lines insurance segment is estimated to incur losses of around $100 million, the Personal Lines insurance segment is anticipated to incur losses of nearly $38 million. Cincinnati Re and Cincinnati Global Underwriting Ltd. are projected to incur losses of around $1 million, while the Excess and Surplus lines insurance segment is expected to incur loss of $2 million.
In the to-be-reported quarter, the property casualty combined ratio is projected to be around 95% due to anticipated losses and expenses. For the third quarter of 2022, net written premium growth is estimated to be nearly 10%.
The Zacks Consensus Estimate for the combined ratio at the Property and Casualty Insurance segment is pegged at 96, indicating a deterioration of 1200 basis points from the year-ago reported figure of 84.
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 fourth-quarter net income in the range of $6.37 to $6.43 per share. It projects non-GAAP operating income in the range of $1.24 to $1.30 per share.
The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at $1.26, indicating a decrease of 36.6% from the prior-year quarter. We expect the bottom line to be $1.20 per share for the to-be-reported quarter.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Cincinnati Financial this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat.
Earnings ESP: Cincinnati Financial has an Earnings ESP of +1.27%. This is because the Most Accurate Estimate of $1.26 is pegged higher that the Zacks Consensus Estimate of $1.25. 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 #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are three other insurance stocks you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat:
American International Group (AIG - Free Report) has an Earnings ESP of +5.73% and a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at $1.19, implying a decline of 24.7% from the figure reported in the year-ago quarter.
AIG beat earnings estimates in three of the last four reported quarters while missing the same in one.
Aon Inc. (AON - Free Report) has an Earnings ESP of +1.52% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at $3.67, indicating a decrease of 1.1% from the year-ago reported figure.
AON beat earnings estimates in three of the last four reported quarters while missing the same in one.
CNO Financial Group (CNO - Free Report) has an Earnings ESP of +6.31% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings stands at 56 cents, indicating a decrease of 35.6% from the year-ago reported figure.
CNO beat earnings estimates in three of the last four reported quarters while missing the same in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.