Loews Corp. Earnings: Three Quarters of Declining Profit Snapped

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S&P 500 (NYSE:SPY) component Loews Corporation (NYSE:L) reported its results for the third quarter. Through its subsidiaries, Loews is involved in commercial property and casualty insurance, operation of offshore oil and gas drilling rigs, production of natural gas and liquids, operation of interstate natural gas pipeline, and operation of hotels.

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Loews Corporation Earnings Cheat Sheet

Results: Net income for Loews Corporation rose to $177 million (45 cents per share) vs. $162 million (40 cents per share) in the same quarter a year earlier. This marks a rise of 9.3% from the year-earlier quarter.

Revenue: Rose 8.1% to $3.71 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Loews Corporation fell short of the mean analyst estimate of 72 cents per share.

Key Stats:

Last quarter’s profit increase breaks a three-quarter run of year-over-year profit decreases. In the second quarter, net income fell 77.8% from the year earlier, while the figure dropped 3.9% in the first quarter and 42.5% in the fourth quarter of the last fiscal year.

The company has now fallen short of estimates in the last two quarters. In the second quarter, it missed expectations by 24 cents with net income of 47 cents versus a mean estimate of net income of 71 cents per share.

Revenue rose last quarter after seeing a drop the quarter before. Revenue fell 4.3% to $3.39 billion in the second quarter from the year earlier.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the fourth quarter is now 81 cents per share, down from 84 cents. For the fiscal year, the average estimate has moved down from $3.10 a share to $2.81 over the last ninety days.

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

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