Reinsurance Group of America Second Quarter Earnings Sneak Peek

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Reinsurance Group of America Inc (NYSE:RGA) will unveil its latest earnings on Thursday, July 26, 2012. Reinsurance Group of America is an insurance holding company engaged in traditional individual and group life, asset-intensive, critical illness and financial reinsurance.

Reinsurance Group of America Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.78 per share, a rise of 3.5% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $1.73. Between one and three months ago, the average estimate moved up. It has risen from $1.74 during the last month. Analysts are projecting profit to rise by 1.8% versus last year to $7.15.

Past Earnings Performance: Last quarter, the company saw profit of $1.52 per share versus a mean estimate of net income of $1.52 per share. This comes after two consecutive quarters of exceeding expectations.

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A Look Back: In the first quarter, profit fell 23.3% to $123.3 million ($1.67 a share) from $160.8 million ($2.18 a share) the year earlier, meeting analyst expectations. Revenue rose 0.5% to $2.29 billion from $2.28 billion.

Stock Price Performance: Between May 23, 2012 and July 20, 2012, the stock price had risen $6.99 (13.9%), from $50.25 to $57.24. The stock price saw one of its best stretches over the last year between January 13, 2012 and January 25, 2012, when shares rose for eight straight days, increasing 6.1% (+$3.27) over that span. It saw one of its worst periods between July 21, 2011 and August 8, 2011 when shares fell for 13 straight days, dropping 26.8% (-$16.74) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 2.7% in revenue from the year-earlier quarter to $2.26 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 14.1% in the second quarter of the last fiscal year, 2% in the third quarter of the last fiscal year and 3.3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 19.4% in the fourth quarter of the last fiscal year and then again in the first quarter.

Analyst Ratings: With eight analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

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

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