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Cincinnati (CINF) to Post Q1 Results: What's in the Offing?

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Cincinnati Financial Corporation (CINF - Free Report) is slated to report first-quarter 2020 results on Apr 27, after the closing bell.

Q1 Earnings & Revenue Expectations   

The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.6 billion, suggesting an improvement of 4.5% from the prior-year quarter.

The same for earnings per share is pegged at $1.10, indicating growth of 4.8% from the year-ago reported figure.

Key Factors to Consider

Cincinnati’s first-quarter performance is likely to have benefited from higher premiums, which is likely to have been driven by premium growth initiatives, renewal price increases and a higher level of insured exposures.

Strength in net investment income is likely have bolstered Cincinnati’s performance in the to-be-reported quarter. Strong cash flows are also likely to have bolstered the company’s investment income in the first quarter.

Moreover, the insurer’s first-quarter results are likely to reflect declining claims amid a reduction in the number of vehicles plying on roads due to the COVID-19 pandemic. The reduction in travel has led to lower claims, which is likely to have benefited Cincinnati’s performance in the to-be-reported quarter.

Efficient pricing decisions across all lines of business are likely to have benefited the company’s underwriting results in the to-be-reported quarter.

However, increased expenses due to higher underwriting expenses, and loss and loss expenses are likely to have impacted the first-quarter performance.

Earnings Surprise History

The company has a trailing four-quarter positive earnings surprise of 17.86%, on average.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Cincinnati 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.

Earnings ESP: Cincinnati has an Earnings ESP of +1.67%. This is because the Most Accurate Estimate of $1.12 is pegged higher than the Zacks Consensus Estimate of $1.10. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Cincinnati carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some stocks worth considering from the insurance space with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:

The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +2.18% and a Zacks Rank #2. The company is scheduled to release first-quarter 2020 earnings on May 5.

Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank of 3, at present. The company is slated to announce first-quarter 2020 earnings on May 5.

American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +1.60% and a Zacks Rank #3. The company is slated to announce first-quarter 2020 earnings on May 4.

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