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.
Cincinnati Financial (CINF): What to Expect in Q3 Earnings?
Read MoreHide Full Article
Cincinnati Financial Corp. (CINF - Free Report) is slated to report third-quarter 2016 results on Oct 25, after the market closes. Last quarter, the company posted a positive earnings surprise of 9.62%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
Cincinnati Financial is likely to witness top-line growth at its Commercial Lines Property Casualty Insurance segment in the to-be-reported quarter. Several growth initiatives as well as a gradual improvement in insurance rates are likely to drive the increase in revenues.
Moreover, the company has likely experienced growth in each of its segments, mainly due to quality new business produced by the company’s agencies.
In addition, the company’s personal and commercial auto businesses have likely performed well. Improved pricing in both these lines of business alongside other initiatives should have driven growth.
However, the company might have suffered catastrophe losses in the to-be-reported quarter, which in turn is likely to adversely affect the P&C insurer’s combined ratio. Also, the company’s life insurance segment might be adversely affected by the persistent volatility in group benefits associated with the Affordable Care Act (ACA).
With respect to the surprise trend, the company delivered positive surprises in all of the last four quarters, with an average beat of 24.20%.
Our proven model does not conclusively show that Cincinnati Financial is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Cincinnati Financial has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 85 cents.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies from the same space that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
CNA Financial Corporation (CNA - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #2. The company is slated to report third-quarter earnings on Oct 31.
RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +3.59% and a Zacks Rank #3. The company is set to report third-quarter earnings on Nov 1.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3. The company is slated to report third-quarter earnings on Nov 2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Cincinnati Financial (CINF): What to Expect in Q3 Earnings?
Cincinnati Financial Corp. (CINF - Free Report) is slated to report third-quarter 2016 results on Oct 25, after the market closes. Last quarter, the company posted a positive earnings surprise of 9.62%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
Cincinnati Financial is likely to witness top-line growth at its Commercial Lines Property Casualty Insurance segment in the to-be-reported quarter. Several growth initiatives as well as a gradual improvement in insurance rates are likely to drive the increase in revenues.
Moreover, the company has likely experienced growth in each of its segments, mainly due to quality new business produced by the company’s agencies.
In addition, the company’s personal and commercial auto businesses have likely performed well. Improved pricing in both these lines of business alongside other initiatives should have driven growth.
However, the company might have suffered catastrophe losses in the to-be-reported quarter, which in turn is likely to adversely affect the P&C insurer’s combined ratio. Also, the company’s life insurance segment might be adversely affected by the persistent volatility in group benefits associated with the Affordable Care Act (ACA).
With respect to the surprise trend, the company delivered positive surprises in all of the last four quarters, with an average beat of 24.20%.
CINCINNATI FINL Price and EPS Surprise
CINCINNATI FINL Price and EPS Surprise | CINCINNATI FINL Quote
Earnings Whispers
Our proven model does not conclusively show that Cincinnati Financial is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Cincinnati Financial has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 85 cents.
Zacks Rank: Cincinnati Financial holds a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies from the same space that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
CNA Financial Corporation (CNA - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #2. The company is slated to report third-quarter earnings on Oct 31.
RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +3.59% and a Zacks Rank #3. The company is set to report third-quarter earnings on Nov 1.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3. The company is slated to report third-quarter earnings on Nov 2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>