We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in Store for Cincinnati Financial (CINF) in Q2 Earnings?
Read MoreHide Full Article
Cincinnati Financial Corporation (CINF - Free Report) is scheduled to report second-quarter 2023 earnings on Jul 27 after market close. The insurer delivered an earnings surprise of 20.88% in the last reported quarter.
Factors to Note
CINF’s premiums are likely to have benefited from premium growth initiatives, a higher level of insured exposures and price increases and higher premiums from Cincinnati Re. The Zacks Consensus Estimate for earned premium is pegged at $1.9 billion, rising 10.9% from the year-ago quarter’s reported figure. We expect earned premium to increase 11.1% to $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 owing to an improving interest rate environment. We expect investment income to increase 7.5% to $209.6 million. The Zacks Consensus Estimate for investment income is pegged at $213 million, indicating a 9.2% increase from the year-ago reported figure.
The Zacks Consensus Estimate for second-quarter revenues is pinned at $2.2 billion, suggesting an increase of 10.8% from the prior-year quarter.
CINF is expected to have gained from better pricing and increased exposure, which are likely to have aided underwriting profitability. The Zacks Consensus Estimate for the combined ratio at Property Casualty is pegged at 101, indicating an improvement of 200 basis points from the year-ago reported quarter. We estimate the combined ratio to be 103.7.
Total benefits and expenses are likely to have increased mainly due to higher insurance losses and contract holders' benefits, underwriting, acquisition and insurance expenses, interest expenses and other operating expenses. We expect total expenses to increase 13.6% to $2.1 billion.
The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 72 cents, indicating an increase of 10.7% from the prior-year 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 here.
Earnings ESP: Cincinnati Financial has an Earnings ESP of -18.97%. This is because the Most Accurate Estimate of 59 cents is pegged lower than the Zacks Consensus Estimate of 72 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
Zacks Rank: Cincinnati Financial currently carries a Zacks Rank #3.
Stocks to Consider
Here are three 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:
AIZ’s earnings beat estimates in three of the last four quarters and missed in the other one.
American Equity Investment Life Holding Company (AEL - Free Report) has an Earnings ESP of +1.70% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at $1.67, indicating a year-over-year increase of 70.4%.
AEL’s earnings beat estimates in three of the last four quarters and missed in the other one.
Brighthouse Financial, Inc. (BHF - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at $3.55, indicating a year-over-year increase of 7.9%.
BHF’s earnings beat estimates in two of the last four quarters and missed in the other two.
Image: Bigstock
What's in Store for Cincinnati Financial (CINF) in Q2 Earnings?
Cincinnati Financial Corporation (CINF - Free Report) is scheduled to report second-quarter 2023 earnings on Jul 27 after market close. The insurer delivered an earnings surprise of 20.88% in the last reported quarter.
Factors to Note
CINF’s premiums are likely to have benefited from premium growth initiatives, a higher level of insured exposures and price increases and higher premiums from Cincinnati Re. The Zacks Consensus Estimate for earned premium is pegged at $1.9 billion, rising 10.9% from the year-ago quarter’s reported figure. We expect earned premium to increase 11.1% to $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 owing to an improving interest rate environment. We expect investment income to increase 7.5% to $209.6 million. The Zacks Consensus Estimate for investment income is pegged at $213 million, indicating a 9.2% increase from the year-ago reported figure.
The Zacks Consensus Estimate for second-quarter revenues is pinned at $2.2 billion, suggesting an increase of 10.8% from the prior-year quarter.
CINF is expected to have gained from better pricing and increased exposure, which are likely to have aided underwriting profitability. The Zacks Consensus Estimate for the combined ratio at Property Casualty is pegged at 101, indicating an improvement of 200 basis points from the year-ago reported quarter. We estimate the combined ratio to be 103.7.
Total benefits and expenses are likely to have increased mainly due to higher insurance losses and contract holders' benefits, underwriting, acquisition and insurance expenses, interest expenses and other operating expenses. We expect total expenses to increase 13.6% to $2.1 billion.
The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 72 cents, indicating an increase of 10.7% from the prior-year 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 here.
Earnings ESP: Cincinnati Financial has an Earnings ESP of -18.97%. This is because the Most Accurate Estimate of 59 cents is pegged lower than the Zacks Consensus Estimate of 72 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 currently carries a Zacks Rank #3.
Stocks to Consider
Here are three 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:
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at $2.60, indicating a year-over-year decline of 11.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
AIZ’s earnings beat estimates in three of the last four quarters and missed in the other one.
American Equity Investment Life Holding Company (AEL - Free Report) has an Earnings ESP of +1.70% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at $1.67, indicating a year-over-year increase of 70.4%.
AEL’s earnings beat estimates in three of the last four quarters and missed in the other one.
Brighthouse Financial, Inc. (BHF - Free Report) has an Earnings ESP of +1.27% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at $3.55, indicating a year-over-year increase of 7.9%.
BHF’s earnings beat estimates in two of the last four quarters and missed in the other two.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.