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What's in Store for Assurant (AIZ) This Earnings Season?
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Assurant, Inc. (AIZ - Free Report) is slated to report first-quarter 2020 results on May 5, after market close.
For the to-be-reported quarter, the Zacks Consensus Estimate for the company’s earnings is pegged at $2.46, indicating an upside of 11.3% from the year-ago reported figure.
The company delivered a positive earnings surprise in three of the last four quarters, the average being 1.75%.
Factors at Play
Assurant is likely to have benefited from solid perfomance at Global Lifestyle, Housing business lines. The contributions from The Warranty Group and launch of new products are also likely to have benefited first-quarter performance of the company.
Global Lifestyle is likely to have benefited from continued mobile subscriber growth, strong growth in Global Automotive and the expansion of mobile programs, several long-standing partnerships.
Global Housing’s performance is likely to have been driven by expansion across all of the lines of business, Specialty Property and Multifamily Housing businesses and lower catastrophes.
All these factors combined are likely to have driven revenue improvement. The Zacks Consensus Estimate for revenues is pegged at $2.5 billion, indicating 6.1% increase from the year-ago reported figure.
The company is also expected to have continued witness strong earnings and cash-flow generation in the first quarter.
Continued share repurchases might have provided additional boost to the bottom line.
However, expenses might have escalated due to higher policyholder benefits, amortization of deferred acquisition costs and value of business acquired, underwriting, general and administrative expenses, plus Interest expense and loss on extinguishment of debt.
What Our Quantitative Model States
Our proven model predicts 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.
Earnings ESP: Assurant has an Earnings ESP of +4.28%. This is because the Most Accurate Estimate is pegged at $2.56, higher than the Zacks Consensus Estimate of $2.46. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Some stocks worth considering from the finance sector with the apt combination of elements to surpass estimates this reporting cycle are as follows:
Virtu Financial, Inc. (VIRT - Free Report) has an Earnings ESP of +39.67% and a Zacks Rank #1 (Strong Buy).
Green Dot Corp. (GDOT - Free Report) has an Earnings ESP of +3.83% and is Zacks #3 Ranked.
Arbor Realty Trust (ABR - Free Report) has a Zacks Rank #3 and an Earnings ESP of +1.59%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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What's in Store for Assurant (AIZ) This Earnings Season?
Assurant, Inc. (AIZ - Free Report) is slated to report first-quarter 2020 results on May 5, after market close.
For the to-be-reported quarter, the Zacks Consensus Estimate for the company’s earnings is pegged at $2.46, indicating an upside of 11.3% from the year-ago reported figure.
The company delivered a positive earnings surprise in three of the last four quarters, the average being 1.75%.
Factors at Play
Assurant is likely to have benefited from solid perfomance at Global Lifestyle, Housing business lines. The contributions from The Warranty Group and launch of new products are also likely to have benefited first-quarter performance of the company.
Global Lifestyle is likely to have benefited from continued mobile subscriber growth, strong growth in Global Automotive and the expansion of mobile programs, several long-standing partnerships.
Global Housing’s performance is likely to have been driven by expansion across all of the lines of business, Specialty Property and Multifamily Housing businesses and lower catastrophes.
All these factors combined are likely to have driven revenue improvement. The Zacks Consensus Estimate for revenues is pegged at $2.5 billion, indicating 6.1% increase from the year-ago reported figure.
The company is also expected to have continued witness strong earnings and cash-flow generation in the first quarter.
Continued share repurchases might have provided additional boost to the bottom line.
However, expenses might have escalated due to higher policyholder benefits, amortization of deferred acquisition costs and value of business acquired, underwriting, general and administrative expenses, plus Interest expense and loss on extinguishment of debt.
What Our Quantitative Model States
Our proven model predicts 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.
Earnings ESP: Assurant has an Earnings ESP of +4.28%. This is because the Most Accurate Estimate is pegged at $2.56, higher than the Zacks Consensus Estimate of $2.46. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Assurant, Inc. Price and EPS Surprise
Assurant, Inc. price-eps-surprise | Assurant, Inc. Quote
Zacks Rank: Assurant carries a Zacks Rank #3, which increases the predictive power of ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some stocks worth considering from the finance sector with the apt combination of elements to surpass estimates this reporting cycle are as follows:
Virtu Financial, Inc. (VIRT - Free Report) has an Earnings ESP of +39.67% and a Zacks Rank #1 (Strong Buy).
Green Dot Corp. (GDOT - Free Report) has an Earnings ESP of +3.83% and is Zacks #3 Ranked.
Arbor Realty Trust (ABR - Free Report) has a Zacks Rank #3 and an Earnings ESP of +1.59%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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