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Genworth Financial (GNW) Q4 Earnings: What's in the Cards?
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Genworth Financial, Inc. (GNW - Free Report) will release fourth-quarter 2016 results on Feb 7, after the market closes. Last quarter, the company posted a negative earnings surprise of 485.71%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
Increase in new business written is likely have driven better results at U.S. Mortgage Insurance business. Benefits from premium rate action approvals and stable claims experience are expected to have contributed to the improved performance at Life Insurance.
Cash expenses are also likely to have decreased. Loss ratio for U.S. mortgage insurance is expected to be below 30–40% in 2016.
However, a low interest rate environment is have likely to have weighed on investment results.
With respect to surprise trend, the company delivered positive surprises in two of the last four quarters, but with an average negative surprise of 149.40%.
Our proven model does not conclusively show that Genworth Financial is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Genworth Financial has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 20 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Genworth Financial carries a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, we need a positive ESP to be confident about an earnings beat.
Conversely, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies from the finance sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
Argo Group International Holdings, Ltd. has an Earnings ESP of +9.52% and a Zacks Rank #3. The company is slated to report fourth-quarter earnings on Feb 13.
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +1.64% and a Zacks Rank #3. The company is set to report fourth-quarter earnings on Feb 14.
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Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>
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Genworth Financial (GNW) Q4 Earnings: What's in the Cards?
Genworth Financial, Inc. (GNW - Free Report) will release fourth-quarter 2016 results on Feb 7, after the market closes. Last quarter, the company posted a negative earnings surprise of 485.71%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
Increase in new business written is likely have driven better results at U.S. Mortgage Insurance business. Benefits from premium rate action approvals and stable claims experience are expected to have contributed to the improved performance at Life Insurance.
Cash expenses are also likely to have decreased. Loss ratio for U.S. mortgage insurance is expected to be below 30–40% in 2016.
However, a low interest rate environment is have likely to have weighed on investment results.
With respect to surprise trend, the company delivered positive surprises in two of the last four quarters, but with an average negative surprise of 149.40%.
Genworth Financial Inc Price and EPS Surprise
Genworth Financial Inc Price and EPS Surprise | Genworth Financial Inc Quote
Earnings Whispers
Our proven model does not conclusively show that Genworth Financial is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Genworth Financial has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 20 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Genworth Financial carries a Zacks Rank #3. Though a favorable Zacks Rank increases the predictive power of ESP, we need a positive ESP to be confident about an earnings beat.
Conversely, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies from the finance sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
CNO Financial Group, Inc. (CNO - Free Report) , which is set to report fourth-quarter earnings on Feb 7, has an Earnings ESP of +2.56% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Argo Group International Holdings, Ltd. has an Earnings ESP of +9.52% and a Zacks Rank #3. The company is slated to report fourth-quarter earnings on Feb 13.
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +1.64% and a Zacks Rank #3. The company is set to report fourth-quarter earnings on Feb 14.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 "Strong Buy" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>