Loews Corp. (NYSE:L) released its second-quarter earnings before the opening bell on Monday.
By the numbers
The New York-based conglomerate posted second-quarter net income of $249 million, or 82 cents per share, up from $230 million, or 72 cents per share, in the year-ago quarter. The earnings per share topped Zacks' consensus estimate by 9.3%. Operating revenue surged 0.8% year over year to $3.6 billion, courtesy of higher insurance premiums.
On the flip side, the company's quarterly expenses were $3.3 billion, reflecting 2% growth from the prior-year period. Higher insurance claims and policyholders' benefits, along with high operating expenses, contributed to its performance.
Loews' CNA Financial division saw revenue grow 2.2% to $2.76 billion. The segment witnessed robust performance in its Life & Group business that was only partly offset by lower favorable net prior-year reserve development in the Property & Casualty business. In contrast, the segment posted a net loss of $249 million.
Revenue in the Boardwalk Pipeline business came in at $327 million, up 14.7% from the previous year. Contract restructuring and expirations offset higher earnings from transportation contracts. The division posted a solid net income of $53 million.
Revenue in the Hotels segment declined 7.5% to $186 million.
Income attributable to Loews dipped 29.4% to $12 million. The company cited multiple factors that led to the earnings decline, such as a $7 million charge associated with the pre-opening expenses incurred at hotels under development as well as writing-off capitalized development costs related to a potential development spot.
Diamond Offshore's sales declined 17.3% to $224 million. The net loss came in at $52 million, which exceeded the $37 million loss witnessed in the prior year's second quarter. The company attributed its poor performance in these key metrics to tough market conditions, higher contract drilling costs on account of amortization of previous deferred costs associated with contracts and drilling rig time.
Loews declared a quarterly dividend of 6.25 cents per share, which will be payable to shareholders on Sept. 10.
Disclosure: I do not hold any positions in the stocks mentioned.
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