Can American Financial (AFG) Beat on Earnings? - Analyst Blog
06 5월 2014 - 11:00PM
Zacks
We expect property and casualty insurer American
Financial Group Inc. (AFG) to beat expectations when it
reports first-quarter 2014 results today after the market
close.
Why a Likely Positive Surprise?
Zacks ESP: Earnings ESP, which represents the
difference between the Most Accurate estimate and the Zacks
Consensus Estimate, is +2.04%. This is a meaningful and leading
indicator of a positive earnings surprise.
Zacks Rank: American Financial carries a Zacks
Rank #3 (Hold). Note that stocks with Zacks Rank #1, 2 and 3 have a
significantly higher chance of beating earnings. The Sell-rated
stocks (#4 and 5) should never be considered going into an earnings
announcement.
The right combination of two key ingredients – Zacks Rank #3 and
+2.04% ESP – makes us confident of an earnings beat when American
Financial reports today.
What is Driving the Better-than-Expected
Earnings?
American Financial is expected to produce favorable earnings
banking on strong results expected from its Annuity as well as
Specialty Property and Casualty insurance operations.
Earnings in the company’s Specialty Property and Casualty
insurance segment is expected to be driven by price increases
(which is expected to remain above loss cost) as well as higher
renewal rates. Within the Property and Casualty segment, higher
contribution is expected from Property and Transportation Group,
crop insurance, property and inland marine operations and workers
compensation insurance.
Apart from top-line growth, we also see bottom-line growth
supported by balance sheet strength, low leverage and disciplined
capital management for regular share buyback and dividend
payment.
Other Stocks to Consider
American Financial is not the only firm looking up this earnings
season. We also see likely earnings beats coming from these 3
players:
Cherry Hill Mortgage Investment Corporation
(CHMI) with earnings ESP of 7.8% and
Zacks Rank #2 (Buy)
Diamondrock Hospitality Co. (DRH) with earnings
ESP of 14.3% and Zacks Rank #3.
Stifel Financial Corp. (SF)
with earnings ESP of 1.43% and Zacks Rank #3.
AMER FINL GROUP (AFG): Free Stock Analysis Report
CHERRY HILL MTG (CHMI): Free Stock Analysis Report
DIAMONDROCK HOS (DRH): Free Stock Analysis Report
STIFEL FINL (SF): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
American Financial (NYSE:AFG)
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부터 9월(9) 2024 으로 10월(10) 2024
American Financial (NYSE:AFG)
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부터 10월(10) 2023 으로 10월(10) 2024