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What's in Store for FGL Holdings (FG) This Earnings Season?

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FGL Holdings (FG - Free Report) is set to report third-quarter 2018 earnings on Nov 7, after the market closes. The company witnessed a negative surprise of 3.85% in the second quarter.

Let’s see what's in store for the company this quarter.

FGL Holdings’ third-quarter results likely have benefited from demographics coupled with a compelling portfolio of indexed annuity products as well as a solid distribution network. This in turn, might have aided premiums in the to-be-reported period.

Its new performance-based income and accumulation product series in February contributed to 12% of fixed indexed annuity sales during the second quarter. We expect this momentum to have sustained in the third quarter as well.

The partnership with Blackstone has been aiding the company, repositioning its investment portfolio to improve investment yield. Improving rate environment coupled with higher asset base and a growing new business likely have provided a cushion to net investment income.

A lower tax rate is expected to have boosted the bottom line.

The Zacks Consensus Estimate for earnings in the quarter to be reported is pegged at 28 cents per share.

What Our Quantitative Model Predicts

Our proven model does not conclusively show that FGL Holdings is likely to beat on earnings this reporting season. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.

Earnings ESP: FGL Holdings has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 28 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

FGL Holdings Price and EPS Surprise

 

Zacks Rank: FGL Holdings carries a Zacks Rank #4, which decreases the predictive power of ESP. Further, a 0.00% ESP makes surprise prediction difficult for the company. We caution against the Sell-rated stocks (4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Some stocks worth considering from the finance sector with the right combination of elements to surpass estimates this time around are as follows:

TCG BDC, Inc. (CGBD - Free Report) is set to report third-quarter earnings on Nov 6 and has an Earnings ESP of +1.65%. The company is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

James River Group Holdings, Ltd. (JRVR - Free Report) has an Earnings ESP of +2.52% and a Zacks Rank #3. The company is set to announce third-quarter earnings on Nov 17.   

Manulife Financial Corp. (MFC - Free Report) has an Earnings ESP of +0.83% and a Zacks Rank of 3. The company is set to release third-quarter earnings on Nov 7.  

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