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Assurant (AIZ) to Report Q3 Earnings: What's in the Cards?

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Assurant, Inc. (AIZ - Free Report) is slated to report third-quarter 2019 results on Nov 5, after market close.

In the last reported quarter, the company reported earnings of $2.34 per share, which beat the Zacks Consensus Estimate by 9.9% and grew 10.9% year over year. The quarter benefited from The Warranty Group and Global Lifestyle’s strong mobile growth on new client partnerships and program expansions.

The company delivered positive earnings surprise in each of the last four reported quarters with the average being 21.75%.

Factors at Play

Assurant is likely to have benefited from solid results at Global Lifestyle, Housing and Preneed business lines. The contributions of The Warranty Group (TWG) are also likely to have aided third-quarter performance of the company.

Global Lifestyle is likely to have benefited from additional mobile and auto investments to support the company’s continued growth and new opportunities, strong mobile growth and program expansions.

Global Housing’s performance is likely to have been aided by higher penetration rates at the new point of lease billing and tracking platform, expanded relationships with management companies through offerings and focus on operational excellence.

All these factors combined are likely to have driven revenue improvement. The Zacks Consensus estimate for revenues is pegged at $2.5 billion, indicating 11.7% increase from the year-ago reported figure.

Expenses are likely to have increased, given higher corporate expenses, higher employee-related expenses and third-party professional fees, underwriting, general and administrative expenses as well as interest expense. However, expense management initiatives across Global Housing are likely to have improved the expense ratio.

The company’s share buyback activity is likely to have aided the bottom line.

The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $1.69, implying an increase of nearly 59.4% from the year-ago reported figure.

What Our Quantitative Model States

Our proven model does not conclusively predict an earnings beat for Assurant 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 that’s not the case here.

Earnings ESP: Assurant has an Earnings ESP of -4.14%. This is because the Most Accurate Estimate is pegged at $1.62, lower than the Zacks Consensus Estimate of $1.69. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Assurant, Inc. Price and EPS Surprise

Zacks Rank: Assurant carries a Zacks Rank #3.

Stocks to Consider

Some stocks from the insurance industry with the perfect mix of elements to outshine estimates this time around are as follows:

Hallmark Financial Srvices (HALL - Free Report) is set to report third-quarter earnings on Nov 7. The company has an Earnings ESP of +3.03% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

NMI Holdings (NMIH - Free Report) has an Earnings ESP of +1.23% and a Zacks Rank of 3. The company is scheduled to release third-quarter earnings on Nov 6.

Sun Life Financial (SLF - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank of 3. The company is slated to announce third-quarter earnings on Nov 6.

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