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Unum (UNM) to Report Q1 Earnings: What's in the Offing?
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Unum Group (UNM - Free Report) is slated to report first-quarter 2020 results on May 4, after the closing bell.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.1 billion, suggesting an improvement of 2.3% from the prior-year quarter.
The same for earnings per share is pegged at $1.38, indicating growth of 5.3% from the year-ago reported figure.
Key Factors to Note
Unum’s first-quarter performance is likely to have benefited from improved premium income and strong investment income. The Zacks Consensus Estimate for first-quarter premium income is pegged at $2.4 billion, suggesting an improvement of 2.9% from the prior-year quarter. Also, the consensus estimate for net investment income is pegged at $606 million, indicating growth of 1.8% from the year-ago reported figure.
Moreover, the company’s results in the quarter to be reported might reflect high premium growth across the Unum U.S. and Colonial Life segments. On one hand, the Unum U.S. segment is likely to have driven by disciplined sales trends, strong persistency in group lines and growth of new product lines like dental and vision. On the other hand, the Colonial Life segment is likely to have gained on the back of improved premium income and favorable risk results. As a result, the Zacks Consensus Estimate for first-quarter premium incomes at the Unum U.S. and Colonial Life segments are pegged at $1.6 billion and $439 million, suggesting an improvement of 3.6% and 4.8%, respectively, from the prior-year quarter.
Though the company’s Unum International segment has been under pressure owing to a lower interest rate environment, the inclusion of Unum Poland is likely to have boosted the segment’s revenues.
Furthermore, continued share buybacks by virtue of its sound capital position are likely to have driven Unum’s performance in the to-be-reported quarter.
However, increased expenses related to commissions, interest expenses and other expenses might have impacted the first-quarter performance.
The company surpassed estimates in two of the trailing four quarters. It has a trailing four-quarter positive earnings surprise of 0.73%, on average.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Unum 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: Unum has an Earnings ESP of +0.25%. This is because the Most Accurate Estimate of $1.39 is pegged higher than the Zacks Consensus Estimate of $1.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some other stocks from the finance sector with the right 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. The company is slated to announce first-quarter 2020 earnings on May 7.
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank of 2, 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.
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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Unum (UNM) to Report Q1 Earnings: What's in the Offing?
Unum Group (UNM - Free Report) is slated to report first-quarter 2020 results on May 4, after the closing bell.
Q1 Estimates
The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.1 billion, suggesting an improvement of 2.3% from the prior-year quarter.
The same for earnings per share is pegged at $1.38, indicating growth of 5.3% from the year-ago reported figure.
Key Factors to Note
Unum’s first-quarter performance is likely to have benefited from improved premium income and strong investment income. The Zacks Consensus Estimate for first-quarter premium income is pegged at $2.4 billion, suggesting an improvement of 2.9% from the prior-year quarter. Also, the consensus estimate for net investment income is pegged at $606 million, indicating growth of 1.8% from the year-ago reported figure.
Moreover, the company’s results in the quarter to be reported might reflect high premium growth across the Unum U.S. and Colonial Life segments. On one hand, the Unum U.S. segment is likely to have driven by disciplined sales trends, strong persistency in group lines and growth of new product lines like dental and vision. On the other hand, the Colonial Life segment is likely to have gained on the back of improved premium income and favorable risk results. As a result, the Zacks Consensus Estimate for first-quarter premium incomes at the Unum U.S. and Colonial Life segments are pegged at $1.6 billion and $439 million, suggesting an improvement of 3.6% and 4.8%, respectively, from the prior-year quarter.
Though the company’s Unum International segment has been under pressure owing to a lower interest rate environment, the inclusion of Unum Poland is likely to have boosted the segment’s revenues.
Furthermore, continued share buybacks by virtue of its sound capital position are likely to have driven Unum’s performance in the to-be-reported quarter.
However, increased expenses related to commissions, interest expenses and other expenses might have impacted the first-quarter performance.
Unum Group Price and EPS Surprise
Unum Group price-eps-surprise | Unum Group Quote
Earnings Surprise History
The company surpassed estimates in two of the trailing four quarters. It has a trailing four-quarter positive earnings surprise of 0.73%, on average.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Unum 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: Unum has an Earnings ESP of +0.25%. This is because the Most Accurate Estimate of $1.39 is pegged higher than the Zacks Consensus Estimate of $1.38. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Unum carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some other stocks from the finance sector with the right 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. The company is slated to announce first-quarter 2020 earnings on May 7.
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +4.28% and a Zacks Rank of 2, 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.
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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