We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Loews (L) Q3 Earnings Down Y/Y on Catastrophe Loss (Revised)
Read MoreHide Full Article
Loews Corporation (L - Free Report) reported third-quarter 2017 operating earnings of 46 cents per share that declined nearly 53% year over year due to huge catastrophe losses and loss from early redemption of debt.
The company stated that excluding these non-recurring items, earnings improved $25 million year over year, driven by higher earnings at CNA Financial (CNA - Free Report) , Diamond Offshore and better results from investment portfolio.
Loews Corporation Price, Consensus and EPS Surprise
Operating revenue of $3.5 billion increased 9.4% year over year. Rise in insurance premiums, contract drilling revenues and other revenues aided this improvement.
Total expenses increased 29% year over year to $3.3 billion, mainly due to higher insurance claims and policyholders’ benefits, contract drilling expenses and other operating costs.
Book value as of Sep 30, 2017 was $56.41 per share, up about 3.3% from $54.62 as of Dec 31, 2016.
Segment Details
CNA Financial’s revenues inched up 0.3% from the prior-year quarter to $2.4 billion. Its reported net income attributable to Loews Corp. is $130 million, reflecting a plunge of 58% from the year-ago quarter. This decline was primarily attributable to $170 million of net catastrophe losses incurred and early redemption of debt.
Boardwalk Pipeline’s revenues slid 1.6% year over year to $301 million. Net income attributable to Loews Corp., increased 21.4% year over year to $17 million, driven by revenues from new growth projects, recently placed in service, and lower interest expense.
Loews Hotels’ revenues inched up 0.6 % year over year to $162 million. Income attributable to Loews Corp. jumped 33.3% to $4 million. Earnings improved on higher equity income from Universal Orlando joint-venture properties and the completion of renovations at the Loews Miami Beach Hotel.
Diamond Offshore’s revenues improved 5.1% year over year to $368 million. Net income attributable to Loews Corp. was $17 million, up 14.3% year over year. Higher fleet utilization, lower depreciation expense and lower effective income tax rate drove this improvement.
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Image: Bigstock
Loews (L) Q3 Earnings Down Y/Y on Catastrophe Loss (Revised)
Loews Corporation (L - Free Report) reported third-quarter 2017 operating earnings of 46 cents per share that declined nearly 53% year over year due to huge catastrophe losses and loss from early redemption of debt.
The company stated that excluding these non-recurring items, earnings improved $25 million year over year, driven by higher earnings at CNA Financial (CNA - Free Report) , Diamond Offshore and better results from investment portfolio.
Loews Corporation Price, Consensus and EPS Surprise
Loews Corporation Price, Consensus and EPS Surprise | Loews Corporation Quote
Behind the Headlines
Operating revenue of $3.5 billion increased 9.4% year over year. Rise in insurance premiums, contract drilling revenues and other revenues aided this improvement.
Total expenses increased 29% year over year to $3.3 billion, mainly due to higher insurance claims and policyholders’ benefits, contract drilling expenses and other operating costs.
Book value as of Sep 30, 2017 was $56.41 per share, up about 3.3% from $54.62 as of Dec 31, 2016.
Segment Details
CNA Financial’s revenues inched up 0.3% from the prior-year quarter to $2.4 billion. Its reported net income attributable to Loews Corp. is $130 million, reflecting a plunge of 58% from the year-ago quarter. This decline was primarily attributable to $170 million of net catastrophe losses incurred and early redemption of debt.
Boardwalk Pipeline’s revenues slid 1.6% year over year to $301 million. Net income attributable to Loews Corp., increased 21.4% year over year to $17 million, driven by revenues from new growth projects, recently placed in service, and lower interest expense.
Loews Hotels’ revenues inched up 0.6 % year over year to $162 million. Income attributable to Loews Corp. jumped 33.3% to $4 million. Earnings improved on higher equity income from Universal Orlando joint-venture properties and the completion of renovations at the Loews Miami Beach Hotel.
Diamond Offshore’s revenues improved 5.1% year over year to $368 million. Net income attributable to Loews Corp. was $17 million, up 14.3% year over year. Higher fleet utilization, lower depreciation expense and lower effective income tax rate drove this improvement.
Zacks Rank
Loews Corp. currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>
(We are reissuing this article to correct a mistake. The earlier article, issued earlier in the day, should no longer be relied upon.)