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Loews (L) Gears Up to Report Q3 Earnings: What's in Store?

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Loews Corporation (L - Free Report) is slated to report third-quarter 2019 results on Oct 28, before market open. The company delivered positive earnings surprise in two of the reported quarters of 2019.

Let’s see how things have shaped up for this announcement.

Better performances at CNA Financial (CNA - Free Report) , Loews Hotels and Boardwalk Pipeline are likely to have aided Loews’ third-quarter performance.

CNA Financial’s third-quarter premiums are likely to have benefited from increase in new business, renewal premium change, rate increase and solid retention. This, in turn, may have driven Loews' performance as it has a stake in CNA Financial. A not-so-active catastrophe environment is expected to have aided underwriting results. Its Life & Group unit is expected to have benefited from favorable persistency.

Loews Hotel is expected to have performed well given solid performance across its properties.

Boardwalk Pipeline, Loews’ subsidiary, is likely to have benefited from growth-enhancing projects and transportation storage of natural gas liquids.

Diamond Offshore’s (DO - Free Report) , in which Loews has a stake, results are likely to have been hurt by lower day rate, drop in contract drilling revenues, higher drilling expense and a decline in rigs working. Loews' results are also expected to reflect challenging conditions in the global offshore drilling market.

Sustained share buybacks are likely to have boosted the bottom line.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 75 cents, implying 14.8% decrease from the year-ago reported figure.

Loews Corporation Price and EPS Surprise

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Loews this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But this is not the case here as you can see below.

Earnings ESP: Loews has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at 75 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Loews carries a Zacks Rank #3.   

Stock to Consider   

Here’s stock from the insurance industry with the perfect mix of elements to surpass estimates this time around:

Radian Group (RDN - Free Report) is set to report third-quarter earnings on Oct 30 and has an Earnings ESP of +0.92%. The company carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here..

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