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Unum Group (UNM) to Report Q2 Earnings: Here's What to Expect
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Unum Group (UNM - Free Report) is slated to report second-quarter 2024 earnings on Jul 30, after market close. The insurer’s earnings beat estimates in three of the last four reported quarters and missed in one.
Factors to Note
Premium in the second quarter is likely to have benefited from solid persistency in the in-force business, better pricing and improved sales in most of the business segments. The Zacks Consensus Estimate is pegged at $2.6 billion. Our estimate is pegged at $2.5 billion, indicating an increase of 4.2% from the year-ago reported figure.
An improving rate environment is likely to have supported higher net investment income. Our estimate is pegged at $516.4 million. The Zacks Consensus Estimate is pegged at $525.9 million.
Improved premiums and an increase in net investment income are likely to have aided top-line growth. The Zacks Consensus Estimate for top line is pegged at $3.2 billion, suggesting an increase of 3.7% from the year-ago number.
The performance of Unum U.S. and Colonial Life, two of the largest operating segments, is likely to have been driven by favorable benefits experience in group product lines, disciplined sales trends, strong persistency in group lines and growth of new product lines. Our estimate for Unum US premiums is pegged at $1.7 billion, while the same for Colonial Life is $444.2 million.
Unum International is likely to have benefited from growing in-force block, rate increases in the group long-term disability product line and higher persistency. Our estimate for the segment’s premium is pegged at $228.7 million.
Expenses are likely to have increased because of higher commissions, interest and debt expenses, amortization of deferred acquisition costs and compensation expenses. We expect total benefits and expenses to be $2.7 billion.
Continued share buybacks are likely to have provided a boost to the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at 2.02, indicating a decrease of 1.9% from the year-ago reported figure.
Quantitative Model Prediction
Our proven model does not conclusively predict an earnings beat for Unum Group this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), which increases the chances of an earnings beat. This is not the case as you can see below.
Earnings ESP: It has an Earnings ESP of -1.01%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +0.54% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.16 per share, indicating a year-over-year increase of 12.5%%.
ACGL’s earnings beat estimates in each of the last four reported quarters.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +36.50% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at 33 cents per share, indicating a year-over-year decrease of 107.5%.
ALL’s earnings beat estimates in three of the last four reported quarters and missed in the one.
Fidelity National Financial (FNF - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.27 per share, indicating a year-over-year decrease of 25.7%.
FNF earnings beat estimates in one of the last four reported quarters and missed in the other three.
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Unum Group (UNM) to Report Q2 Earnings: Here's What to Expect
Unum Group (UNM - Free Report) is slated to report second-quarter 2024 earnings on Jul 30, after market close. The insurer’s earnings beat estimates in three of the last four reported quarters and missed in one.
Factors to Note
Premium in the second quarter is likely to have benefited from solid persistency in the in-force business, better pricing and improved sales in most of the business segments. The Zacks Consensus Estimate is pegged at $2.6 billion. Our estimate is pegged at $2.5 billion, indicating an increase of 4.2% from the year-ago reported figure.
An improving rate environment is likely to have supported higher net investment income. Our estimate is pegged at $516.4 million. The Zacks Consensus Estimate is pegged at $525.9 million.
Improved premiums and an increase in net investment income are likely to have aided top-line growth. The Zacks Consensus Estimate for top line is pegged at $3.2 billion, suggesting an increase of 3.7% from the year-ago number.
The performance of Unum U.S. and Colonial Life, two of the largest operating segments, is likely to have been driven by favorable benefits experience in group product lines, disciplined sales trends, strong persistency in group lines and growth of new product lines. Our estimate for Unum US premiums is pegged at $1.7 billion, while the same for Colonial Life is $444.2 million.
Unum International is likely to have benefited from growing in-force block, rate increases in the group long-term disability product line and higher persistency. Our estimate for the segment’s premium is pegged at $228.7 million.
Expenses are likely to have increased because of higher commissions, interest and debt expenses, amortization of deferred acquisition costs and compensation expenses. We expect total benefits and expenses to be $2.7 billion.
Continued share buybacks are likely to have provided a boost to the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at 2.02, indicating a decrease of 1.9% from the year-ago reported figure.
Quantitative Model Prediction
Our proven model does not conclusively predict an earnings beat for Unum Group this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), which increases the chances of an earnings beat. This is not the case as you can see below.
Earnings ESP: It has an Earnings ESP of -1.01%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Unum Group Price and EPS Surprise
Unum Group price-eps-surprise | Unum Group Quote
Zacks Rank: Unum Group currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +0.54% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $2.16 per share, indicating a year-over-year increase of 12.5%%.
ACGL’s earnings beat estimates in each of the last four reported quarters.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +36.50% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at 33 cents per share, indicating a year-over-year decrease of 107.5%.
ALL’s earnings beat estimates in three of the last four reported quarters and missed in the one.
Fidelity National Financial (FNF - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.27 per share, indicating a year-over-year decrease of 25.7%.
FNF earnings beat estimates in one of the last four reported quarters and missed in the other three.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar