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CNO Financial (CNO) Up 2.1% Since Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for CNO Financial Group, Inc. (CNO - Free Report) . Shares have added about 2.1% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
CNO Financial (CNO - Free Report) Misses on Earnings, Beats Revenues in Q4
CNO Financial Group.’s fourth-quarter 2016 net operating earnings of $0.35 per share missed the Zacks Consensus Estimate by 10.2%. The bottom line also decreased 8% year over year.
For 2016, the company reported net operating income per diluted share of $1.47, up 4.2% from 2015.
CNO Financial’s fourth-quarter total revenue increased 3.5% year over year to $1 billion. The top line also surpassed the Zacks Consensus Estimate of $964 million by 4%.
For 2016, the company reported total revenue of $3.98 billion, up 4.5% year over year.
For the fourth quarter, total new annualized premiums dipped 4% year over year to $106.7 million.
Quarterly Segment Update
Bankers Life
New annualized premiums decreased 6% year over year to $65 million, down due to lower sales of Medicare supplement and life products. Pre-tax operating earnings of $138.9 million rose 15% year over year due to positive comprehensive annual actuarial review, including the net impact of changes to spread and persistency assumptions related to fixed index annuities.
WashingtonNational
New Annualized premiums grew 3% year over year to $27 million due to higher sales of supplemental health products.Pre-tax operating earnings in the reported quarter plunged by $2.4 million from the prior-year quarter due to the absence of positive comprehensive annual actuarial review, including the net impact of changes to spread and persistency assumptions related to fixed index annuities in 2016.
Colonial Penn
New Annualized premiums was $14.7 million, down 6% year over year. The downside reflectslower lead volume, primarily due to reduced television advertising as a result of the elections. Pre-tax operating earnings were down by $2.1 million year over year to $4.6 million, primarily due to loss recognition on a closed block of payout annuities resulting from changes in long-term interest rates and mortality assumptions.
Corporate Operations
The segment includes investment advisory subsidiary and corporate expenses. Pre-tax losses were $23 million, about 228% wider than a loss of $7 million the year-ago quarter owing to less favorable investment returns and higher expenses.
Financial Update
Unrestricted cash and investments held by CNO Financial’sholding company were $264 million at Dec 31, 2016, compared with $189 million at Sep 30, 2016.
Book value per diluted share, excluding accumulated other comprehensive income, increased to $22.02 from $20.05 in the prior-year quarter.
Consolidated risk-based capital ratio was estimated at 459% as of Dec 31, 2016. This, reflects estimated statutory operating earnings of $286 million compared with 449% as of Dec 31, 2015.
Securities Repurchase and Divided Update
During 2016, CNO Financial repurchased shares worth $203 million and paid dividends of $55 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one downward revision for the current quarter.
At this time, CNO Financial's stock has a poor Growth Score of 'F', however its Momentum is doing a bit 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.
The stock is suitable solely for value based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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CNO Financial (CNO) Up 2.1% Since Earnings Report: Can It Continue?
A month has gone by since the last earnings report for CNO Financial Group, Inc. (CNO - Free Report) . Shares have added about 2.1% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
CNO Financial (CNO - Free Report) Misses on Earnings, Beats Revenues in Q4
CNO Financial Group.’s fourth-quarter 2016 net operating earnings of $0.35 per share missed the Zacks Consensus Estimate by 10.2%. The bottom line also decreased 8% year over year.
For 2016, the company reported net operating income per diluted share of $1.47, up 4.2% from 2015.
CNO Financial’s fourth-quarter total revenue increased 3.5% year over year to $1 billion. The top line also surpassed the Zacks Consensus Estimate of $964 million by 4%.
For 2016, the company reported total revenue of $3.98 billion, up 4.5% year over year.
For the fourth quarter, total new annualized premiums dipped 4% year over year to $106.7 million.
Quarterly Segment Update
Bankers Life
New annualized premiums decreased 6% year over year to $65 million, down due to lower sales of Medicare supplement and life products. Pre-tax operating earnings of $138.9 million rose 15% year over year due to positive comprehensive annual actuarial review, including the net impact of changes to spread and persistency assumptions related to fixed index annuities.
WashingtonNational
New Annualized premiums grew 3% year over year to $27 million due to higher sales of supplemental health products.Pre-tax operating earnings in the reported quarter plunged by $2.4 million from the prior-year quarter due to the absence of positive comprehensive annual actuarial review, including the net impact of changes to spread and persistency assumptions related to fixed index annuities in 2016.
Colonial Penn
New Annualized premiums was $14.7 million, down 6% year over year. The downside reflectslower lead volume, primarily due to reduced television advertising as a result of the elections. Pre-tax operating earnings were down by $2.1 million year over year to $4.6 million, primarily due to loss recognition on a closed block of payout annuities resulting from changes in long-term interest rates and mortality assumptions.
Corporate Operations
The segment includes investment advisory subsidiary and corporate expenses. Pre-tax losses were $23 million, about 228% wider than a loss of $7 million the year-ago quarter owing to less favorable investment returns and higher expenses.
Financial Update
Unrestricted cash and investments held by CNO Financial’sholding company were $264 million at Dec 31, 2016, compared with $189 million at Sep 30, 2016.
Book value per diluted share, excluding accumulated other comprehensive income, increased to $22.02 from $20.05 in the prior-year quarter.
Consolidated risk-based capital ratio was estimated at 459% as of Dec 31, 2016. This, reflects estimated statutory operating earnings of $286 million compared with 449% as of Dec 31, 2015.
Securities Repurchase and Divided Update
During 2016, CNO Financial repurchased shares worth $203 million and paid dividends of $55 million.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed a downward trend in fresh estimates. There has been one downward revision for the current quarter.
CNO Financial Group, Inc. Price and Consensus
CNO Financial Group, Inc. Price and Consensus | CNO Financial Group, Inc. Quote
VGM Scores
At this time, CNO Financial's stock has a poor Growth Score of 'F', however its Momentum is doing a bit 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.
The stock is suitable solely for value based on our styles scores.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.