Cincinnati Financial Earnings: Exceeds Estimates on Top and Bottom Line

S&P 500 (NYSE:SPY) component Cincinnati Financial Corporation (NASDAQ:CINF) reported its results for the second quarter. Cincinnati Financial markets property casualty insurance.

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Cincinnati Financial Corporation Earnings Cheat Sheet

Results: Reported a profit of $32 million (20 cents per diluted share) in the quarter. Cincinnati Financial Corporation had a net loss of $50 million or a loss 31 cents per share in the year-earlier quarter.

Revenue: Rose 4.6% to $1.02 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Cincinnati Financial Corporation beat the mean analyst estimate of 15 cents per share. It beat the average revenue estimate of $991 million.

Quoting Management: Steven J. Johnston, president and chief executive officer, commented: “Investment income remained our main source of profits as our investment portfolio continued its steady performance for the second quarter. Both our equity portfolio and our bond portfolio generated income that matched second-quarter and six-month 2011 levels, reflecting our consistent, proven investment approach. As previously announced, catastrophe losses led to a property casualty insurance underwriting loss, in contrast to two previous sequential quarters of underwriting profits. In each of the past three years, spring storms have caused underwriting performance to ebb to a low in the second quarter.”

Key Stats:

The company has now topped analyst estimates for the last three quarters. It beat the mark by 6 cents in the first quarter and by 19 cents in the fourth quarter of the last fiscal year.

Revenue has now increased for three consecutive quarters. In the first quarter, revenue rose 6.1% to $986 million while the figure rose 2% in the fourth quarter of the last fiscal year from the year earlier.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 35 cents a share to 37 cents over the last seven days. The average estimate for the fiscal year has fallen to $1.47 per share from $1.59 seven days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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