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Assurant (AIZ) to Report Q1 Earnings: What's in the Cards?

Zacks Equity Research

Assurant, Inc. AIZ is slated to report first-quarter 2019 results on May 6, after market close. In the last reported quarter, the company delivered a positive earnings surprise.

Let’s see how things are shaping up for this announcement.

Assurant is likely to benefit from solid results at Global Lifestyle, Housing and Preneed business lines. The acquisition of The Warranty Group (TWG) is also likely to contribute.

The quarter is likely to benefit from diversified product and service portfolio, client partnerships and increased market share.

Improved interest rate environment and higher invested assets are expected to support better investment results.

All these factors combined are likely to drive revenue improvement. The Zacks Consensus estimate for revenues is pegged at $2.3 billion, indicating 42.2% increase from the year-ago reported figure.

Global Lifestyle is expected to benefit from growth at Connected Living and Global Automotive.

With respect to Global Housing, the company is estimated to witness better-than-expected results, primarily boosted by sustained revenue growth in multifamily housing, realignment of business and implementation of different expense management initiatives across this segment.

However, expenses may increase, mainly due to a possible increase in policyholder benefits, selling, underwriting, general and administrative expenses as well as interest expense.

Continued share buyback should aid the bottom line.

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $2.13, implying an increase of 6.5% from the year-ago reported figure.

What Our Quantitative Model States

Our proven model does not conclusively show that Assurant is likely to beat on earnings in the to-be-reported period. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.

Earnings ESP: Assurant has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate as well as the Zacks Consensus Estimate is pegged at $2.13. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Assurant, Inc. Price and EPS Surprise

Assurant, Inc. Price and EPS Surprise | Assurant, Inc. Quote

Zacks Rank: Assurant carries a Zacks Rank #4 (Sell). We caution against Zacks Rank #4 or 5 (Strong Sell) stocks going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Some stocks from the insurance industry with the perfect mix of elements to outshine estimates this time around are as follows:

Essent Group Ltd. ESNT is set to report first-quarter earnings on May 3. The company has an Earnings ESP of +3.13% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Everest Re Group, Ltd. RE has an Earnings ESP of +3.17% and a Zacks Rank of 3. The company is scheduled to release first-quarter earnings on May 6.

Sun Life Financial Inc. SLF has an Earnings ESP of +1.10% and a Zacks Rank of 3. The company is slated to announce first-quarter earnings on May 8.

Zacks' Top 10 Stocks for 2019

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Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

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