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Loews (L) Q3 Earnings Down Y/Y on Catastrophe Loss (Revised)
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Loews Corporation (L - Free Report) reported third-quarter 2017 operating earnings of 46 cents per share that declined nearly 53% year over year due to huge catastrophe losses and loss from early redemption of debt.
The company stated that excluding these non-recurring items, earnings improved $25 million year over year, driven by higher earnings at CNA Financial (CNA - Free Report) , Diamond Offshore (DO - Free Report) and better results from investment portfolio.
Loews Corporation Price, Consensus and EPS Surprise
Operating revenue of $3.5 billion increased 9.4% year over year. Rise in insurance premiums, contract drilling revenues and other revenues aided this improvement.
Total expenses increased 29% year over year to $3.3 billion, mainly due to higher insurance claims and policyholders’ benefits, contract drilling expenses and other operating costs.
Book value as of Sep 30, 2017 was $56.41 per share, up about 3.3% from $54.62 as of Dec 31, 2016.
Segment Details
CNA Financial’s revenues inched up 0.3% from the prior-year quarter to $2.4 billion. Its reported net income attributable to Loews Corp. is $130 million, reflecting a plunge of 58% from the year-ago quarter. This decline was primarily attributable to $170 million of net catastrophe losses incurred and early redemption of debt.
Boardwalk Pipeline’s revenues slid 1.6% year over year to $301 million. Net income attributable to Loews Corp., increased 21.4% year over year to $17 million, driven by revenues from new growth projects, recently placed in service, and lower interest expense.
Loews Hotels’ revenues inched up 0.6 % year over year to $162 million. Income attributable to Loews Corp. jumped 33.3% to $4 million. Earnings improved on higher equity income from Universal Orlando joint-venture properties and the completion of renovations at the Loews Miami Beach Hotel.
Diamond Offshore’s revenues improved 5.1% year over year to $368 million. Net income attributable to Loews Corp. was $17 million, up 14.3% year over year. Higher fleet utilization, lower depreciation expense and lower effective income tax rate drove this improvement.
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Loews (L) Q3 Earnings Down Y/Y on Catastrophe Loss (Revised)
Loews Corporation (L - Free Report) reported third-quarter 2017 operating earnings of 46 cents per share that declined nearly 53% year over year due to huge catastrophe losses and loss from early redemption of debt.
The company stated that excluding these non-recurring items, earnings improved $25 million year over year, driven by higher earnings at CNA Financial (CNA - Free Report) , Diamond Offshore (DO - Free Report) and better results from investment portfolio.
Loews Corporation Price, Consensus and EPS Surprise
Loews Corporation Price, Consensus and EPS Surprise | Loews Corporation Quote
Behind the Headlines
Operating revenue of $3.5 billion increased 9.4% year over year. Rise in insurance premiums, contract drilling revenues and other revenues aided this improvement.
Total expenses increased 29% year over year to $3.3 billion, mainly due to higher insurance claims and policyholders’ benefits, contract drilling expenses and other operating costs.
Book value as of Sep 30, 2017 was $56.41 per share, up about 3.3% from $54.62 as of Dec 31, 2016.
Segment Details
CNA Financial’s revenues inched up 0.3% from the prior-year quarter to $2.4 billion. Its reported net income attributable to Loews Corp. is $130 million, reflecting a plunge of 58% from the year-ago quarter. This decline was primarily attributable to $170 million of net catastrophe losses incurred and early redemption of debt.
Boardwalk Pipeline’s revenues slid 1.6% year over year to $301 million. Net income attributable to Loews Corp., increased 21.4% year over year to $17 million, driven by revenues from new growth projects, recently placed in service, and lower interest expense.
Loews Hotels’ revenues inched up 0.6 % year over year to $162 million. Income attributable to Loews Corp. jumped 33.3% to $4 million. Earnings improved on higher equity income from Universal Orlando joint-venture properties and the completion of renovations at the Loews Miami Beach Hotel.
Diamond Offshore’s revenues improved 5.1% year over year to $368 million. Net income attributable to Loews Corp. was $17 million, up 14.3% year over year. Higher fleet utilization, lower depreciation expense and lower effective income tax rate drove this improvement.
Zacks Rank
Loews Corp. currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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(We are reissuing this article to correct a mistake. The earlier article, issued earlier in the day, should no longer be relied upon.)