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What Awaits Cincinnati Financial (CINF) in Q3 Earnings?

Zacks Equity Research

Cincinnati Financial CINF is slated to report third-quarter 2019 earnings on Oct 24 after market close. The company delivered a positive surprise of 32.81% in the last reported quarter.

Let’s see what’s in store for the company in the upcoming announcement.
Strong performance at Commercial Lines segment, disciplined expansion of Cincinnati Re, increase in new business written and company’s agent-focused business model are likely to have been reflected in Cincinnati Financial’s third-quarter results.

The Commercial Lines segment is expected to have benefited from growth initiatives and increase in insurance rates.

Premiums are likely to have been supported by growth initiatives, price increases and a higher level of insured exposures.

Strong cash flow from operating activities is likely to have aided net investment income.

The top-line is likely to have benefited from higher premiums and increase in investment income.

A not-so-active catastrophe environment, retention of more profitable accounts and better pricing on less profitable business are likely to have aided underwriting profit and combined ratio.

Expenses are likely to have increased due to higher insurance loss and policyholder benefits as well as underwriting, acquisition and insurance expenses.

The Zacks Consensus Estimate for third-quarter earnings per share stands at 93 cents, implying an increase of 10.7% from the year-ago reported figure.

What Our Quantitative Model States

Our proven model does not conclusively predict an earnings beat for Cincinnati Financial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: Cincinnati Financial has an Earnings ESP of -2.70%. This is because the Most Accurate Estimate is pegged at 90 cents, lower than the Zacks Consensus Estimate of 93 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
 

Cincinnati Financial Corporation Price and EPS Surprise

Cincinnati Financial Corporation Price and EPS Surprise

Cincinnati Financial Corporation price-eps-surprise | Cincinnati Financial Corporation Quote

Zacks Rank: Cincinnati Financial carries a Zacks Rank #3.

Stocks to Consider

Some stocks from the insurance industry with the apt combination of elements to surpass estimates this reporting cycle are as follows:

The Allstate Corporation ALL is set to report third-quarter earnings on Oct 29. It has an Earnings ESP of +4.2% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

CNA Financial Corporation CNA has an Earnings ESP of +0.95% and is a Zacks #3 Ranked player. The company is slated to announce third-quarter earnings on Oct 28.

Radian Group RDN has an Earnings ESP of +1.89% and Zacks Rank #2. The company is set to release third-quarter earnings on Oct 30.

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Radian Group Inc. (RDN) : Free Stock Analysis Report
 
The Allstate Corporation (ALL) : Free Stock Analysis Report
 
CNA Financial Corporation (CNA) : Free Stock Analysis Report
 
Cincinnati Financial Corporation (CINF) : Free Stock Analysis Report
 
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