U.S. Markets closed

What's in the Cards for Unum Group (UNM) in Q3 Earnings?

Zacks Equity Research

Unum Group UNM will report third-quarter 2019 results on Oct 29 after market close. The company delivered positive earnings surprise in two of the last four quarters with the average beat being 1.94%.

Factors at Play

Unum Group’s third-quarter results are likely to benefit from strong persistency trends and renewal premium increases at its core businesses segments. This is likely to have fueled premium growth and helped it to maintain favorable benefits experience. Premium income is likely to have benefited from increased sales in voluntary benefits and dental and vision product lines of Unum US segment.

Unum International is likely to have benefited from the inclusion of Unum Poland and improved rate increases in the group long-term disability line and higher persistency.

The Zacks Consensus Estimate for Unum U.S. premium is pegged at $1.5 billion, indicating 3.7% increase from the year-ago period reported figure while that for Colonial Life is pegged at $423 million, indicating 5.7% increase from the year-ago period reported figure.

The Zacks Consensus Estimate for premium income is pegged at nearly $2.3 billion, indicating 3.7% increase from the year-ago period reported figure.

Lower interest rate along with strict credit spread is likely to have impacted net investment income. The Zacks Consensus Estimate for the metric is pegged at $614 million, indicating 0.8% decrease from the year-ago period reported figure.

Interest expenses are likely to have increased given higher debt level.

However, policy terminations and maturities for the individual disability lines are expected to have weighed on the Closed Block segment.

Continued share buyback is likely to have provided additional boost to the bottom line.

The Zacks Consensus Estimate for earnings is pegged at $1.37 per share, which indicates no change from the year-ago quarter reported figure.

What Our Quantitative Model States

Our proven model does not conclusively predict an earnings beat for Unum Group 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: Unum Group has an Earnings ESP of -1.70%. This is because the Most Accurate Estimate is pegged at $1.35, lower than the Zacks Consensus Estimate of $1.37. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Unum Group Price and EPS Surprise

Unum Group Price and EPS Surprise

Unum Group price-eps-surprise | Unum Group Quote

Zacks Rank: Unum Group 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:

Hallmark Financial Services HALL is set to report third-quarter earnings on Nov 7. It has an Earnings ESP of +3.03% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

NMI Holdings NMIH has an Earnings ESP of +1.23% and is a Zacks #3 Ranked player. The company is slated to announce third-quarter earnings on Nov 6.

Radian Group RDN has an Earnings ESP of +0.92% and a Zacks Rank of 2. The company is set to release third-quarter earnings on Oct 30.

5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.

Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>
 


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Radian Group Inc. (RDN) : Free Stock Analysis Report
 
Unum Group (UNM) : Free Stock Analysis Report
 
Hallmark Financial Services, Inc. (HALL) : Free Stock Analysis Report
 
NMI Holdings Inc (NMIH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.