Genworth Financial Earnings: Here’s Why Genworth is Down After Earnings
Genworth Financial Inc. (NYSE:GNW) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1%.
Genworth Financial Inc. Earnings Cheat Sheet
Results: Net income increased 55.14% to $166 million (34 cents per diluted share) in the quarter versus a net gain of $107 million in the year-earlier quarter.
Revenue: Decreased 2.38% to $2.54 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Genworth Financial Inc. reported adjusted net income of 34 cents per share. By that measure, the company beat the mean analyst estimate of $0.27. It missed the average revenue estimate of $2.56 billion.
Quoting Management: “U.S. mortgage insurance continued its recovery in the fourth quarter, and the company achieved a number of its strategic goals to improve financial flexibility highlighted by the comprehensive U.S. capital plan announced in January,” said Tom McInerney, President and CEO. “However, results in the U.S. Life Insurance Division were mixed, and I am disappointed in our long term care results. We are focused on executing our plans to rebuild shareholder value.”