Genworth Financial Earnings: Coming Back to Profit

S&P 500 (NYSE:SPY) component Genworth Financial Inc. (NYSE:GNW) reversed to a profit in the third quarter but still missed analysts’ estimates. Genworth Financial provides wealth management, insurance, investment and financial solutions to customers.

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Genworth Financial Inc. Earnings Cheat Sheet

Results: Reported a profit of $34 million (7 cents per diluted share) in the quarter. Genworth Financial Inc. had a net loss of $16 million or a loss 3 cents per share in the year-earlier quarter.

Revenue: Reported $2.536 billion.

Actual vs. Wall St. Expectations: Genworth Financial Inc. fell short of the mean analyst estimate of 19 cents per share. It fell short of the average revenue estimate of $2.57 billion.

Quoting Management: “Steady improvement in our operating results in the Global Mortgage Insurance Division and stable underlying performance in the Insurance and Wealth Management Division increased total net operating income both year over year and sequentially again this quarter. Dividends continue to provide liquidity to the holding company,” said Martin P. Klein, acting chief executive officer and chief financial officer. “We are committed to improving business performance and generating capital as we rebuild shareholder value.”

Key Stats:

The company has missed analyst estiamtes for four quarters in a row. It fell short by one cent in the second quarter, by 6 cents in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Revenue has fallen for the past three quarters. In the second quarter, revenue declined 5% to $2.52 billion while the figure fell 5.5% in the first quarter from the year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 20 cents per share, down from 24 cents ninety days ago. At 61 cents per share, the average estimate for the fiscal year has fallen from 74 cents ninety days ago.

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

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