State Auto Financial Earnings: Here’s Why Shares are Down Now
State Auto Financial Corp. (NASDAQ:STFC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.29%.
State Auto Financial Corp. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased to $0.38 in the quarter versus EPS of $-0.16 in the year-earlier quarter.
Revenue: Rose 1.78% to $285.3 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: State Auto Financial Corp. reported adjusted EPS income of $0.38 per share. By that measure, the company beat the mean analyst estimate of $0.31. It beat the average revenue estimate of $281.26 million.
Quoting Management: President and CEO Bob Restrepo commented: “State Auto Financial Corporation begins 2013 with a strong quarter and improving fundamentals. Our 100.2 combined ratio was substantially better than the first quarter 2012. Improvement came from more normal catastrophe experience, continued runoff of the former RED unit, and price increases in all segments and all lines. Our homeowners quota share treaty inflated the non-catastrophe combined ratio, but setting aside this impact and RED runoff, our underlying combined ratio for the quarter was 94.0.”
Key Stats (on next page)…