We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
CNO (CNO) Up 6.1% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
A month has gone by since the last earnings report for CNO Financial (CNO - Free Report) . Shares have added about 6.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CNO due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
CNO Q2 Earnings Beat Estimates on Strong Annuity Collected Premiums
CNO reported second-quarter adjusted earnings per share (EPS) of 87 cents, which beat the Zacks Consensus Estimate by 2.4%. However, the bottom line tumbled 17% year over year.
Operating revenues of $1.2 billion advanced 8% year over year. The top line outpaced the consensus mark by 19.3%.
The quarterly results were supported by strong annuity collected premiums from annuity, life and health products, rising new annualized premiums and higher fee revenues. Nevertheless, the upside was partly offset by a rise in total expenses as a result of higher insurance policy benefits and operating costs. Net investment losses pressured margins.
CNO's Q2 Performance
Total insurance policy income inched up 1.5% year over year to $651.3 million but missed the Zacks Consensus Estimate of $653 million. The metric was aided by improved collected premiums from annuity, life and health products.
Net investment losses were $21.8 million, slightly narrower than the prior-year quarter’s loss of $21.9 million. General account assets grew 7.6% year over year to $378.3 million, higher than the consensus mark of $321 million. Policyholder and other special-purpose portfolios of $105.4 million surged 83.6% year over year in the quarter under review. Fee revenues and other income rose 6.4% year over year to $34.9 million.
Annuity collected premiums of $520.5 million improved 19% year over year, while health collected premiums increased 2.3% year over year to $409.5 million. Collected premiums from life products totaled $245.5 million, which inched up 1.3% year over year. The total collected premiums advanced 8.7% year over year to $1.2 billion.
New annualized premiums for health products rose 10.7% year over year, while the same for life products climbed 22.2% year over year. Annuity, Health and Life products accounted for 21.7%, 53.1% and 25.2%, respectively, of CNO's insurance margin.
Total benefits and expenses escalated 12.9% year over year to $1 billion due to higher insurance policy benefits and other operating costs and expenses.
CNO’s Financial Update (As of June 30, 2025)
CNO Financial exited the second quarter with unrestricted cash and cash equivalents of $766 million, which plunged 53.8% from the 2024-end level.
Total assets of $37.3 billion dipped 1.4% from the figure at 2024-end.
The debt-to-capital ratio was 34.6% at the second-quarter end, which improved 760 basis points (bps) from the 2024-end figure.
Total shareholders’ equity inched up 0.3% from the 2024-end level to $2.5 billion.
Book value per common share was $25.92, which increased 4.7% from the figure at 2024-end. Operating return on equity, excluding significant items, improved 120 bps year over year to 11.2% at the second-quarter end.
CNO Financial rewarded its shareholders with $100 million in the form of share buybacks and $16.7 million in dividends during the second quarter.
As of June 30, 2025, the company had a leftover repurchase capacity of $540.4 million.
CNO’s 2025 Guidance
CNO Financial continues to anticipate operating EPS in the range of $3.70-$3.90.
For 2025, management still estimates excess cash flow in the band of $200-$250 million to the holding company.
The company currently projects the expense ratio to be in the band of 19-19.2%, narrower than the prior view of 19-19.4%. It still estimates the effective tax rate to be around 23%. Management continues to target achieving leverage within the band of 25-28%.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a flat trend in fresh estimates.
VGM Scores
At this time, CNO has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock has 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
CNO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CNO (CNO) Up 6.1% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for CNO Financial (CNO - Free Report) . Shares have added about 6.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is CNO due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
CNO Q2 Earnings Beat Estimates on Strong Annuity Collected Premiums
CNO reported second-quarter adjusted earnings per share (EPS) of 87 cents, which beat the Zacks Consensus Estimate by 2.4%. However, the bottom line tumbled 17% year over year.
Operating revenues of $1.2 billion advanced 8% year over year. The top line outpaced the consensus mark by 19.3%.
The quarterly results were supported by strong annuity collected premiums from annuity, life and health products, rising new annualized premiums and higher fee revenues. Nevertheless, the upside was partly offset by a rise in total expenses as a result of higher insurance policy benefits and operating costs. Net investment losses pressured margins.
CNO's Q2 Performance
Total insurance policy income inched up 1.5% year over year to $651.3 million but missed the Zacks Consensus Estimate of $653 million. The metric was aided by improved collected premiums from annuity, life and health products.
Net investment losses were $21.8 million, slightly narrower than the prior-year quarter’s loss of $21.9 million. General account assets grew 7.6% year over year to $378.3 million, higher than the consensus mark of $321 million. Policyholder and other special-purpose portfolios of $105.4 million surged 83.6% year over year in the quarter under review. Fee revenues and other income rose 6.4% year over year to $34.9 million.
Annuity collected premiums of $520.5 million improved 19% year over year, while health collected premiums increased 2.3% year over year to $409.5 million. Collected premiums from life products totaled $245.5 million, which inched up 1.3% year over year. The total collected premiums advanced 8.7% year over year to $1.2 billion.
New annualized premiums for health products rose 10.7% year over year, while the same for life products climbed 22.2% year over year. Annuity, Health and Life products accounted for 21.7%, 53.1% and 25.2%, respectively, of CNO's insurance margin.
Total benefits and expenses escalated 12.9% year over year to $1 billion due to higher insurance policy benefits and other operating costs and expenses.
CNO’s Financial Update (As of June 30, 2025)
CNO Financial exited the second quarter with unrestricted cash and cash equivalents of $766 million, which plunged 53.8% from the 2024-end level.
Total assets of $37.3 billion dipped 1.4% from the figure at 2024-end.
The debt-to-capital ratio was 34.6% at the second-quarter end, which improved 760 basis points (bps) from the 2024-end figure.
Total shareholders’ equity inched up 0.3% from the 2024-end level to $2.5 billion.
Book value per common share was $25.92, which increased 4.7% from the figure at 2024-end. Operating return on equity, excluding significant items, improved 120 bps year over year to 11.2% at the second-quarter end.
CNO Financial’s Share Repurchase & Dividend Update
CNO Financial rewarded its shareholders with $100 million in the form of share buybacks and $16.7 million in dividends during the second quarter.
As of June 30, 2025, the company had a leftover repurchase capacity of $540.4 million.
CNO’s 2025 Guidance
CNO Financial continues to anticipate operating EPS in the range of $3.70-$3.90.
For 2025, management still estimates excess cash flow in the band of $200-$250 million to the holding company.
The company currently projects the expense ratio to be in the band of 19-19.2%, narrower than the prior view of 19-19.4%. It still estimates the effective tax rate to be around 23%. Management continues to target achieving leverage within the band of 25-28%.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a flat trend in fresh estimates.
VGM Scores
At this time, CNO has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. However, the stock has 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
CNO has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.