Yahoo Finance Is a Beat in Store for Unum Group (UNM) This Earnings Season?
Unum Group UNM is slated to report first-quarter 2024 earnings on Apr 30, after market close. The insurer’s earnings beat estimates in three of the last four reported quarters and missed in one.
Factors to Note
Strong persistency in the in-force business, better pricing and solid sales in most of the business segments are likely to have benefited UNM’s premiums in the to-be-reported quarter. The Zacks Consensus Estimate is pegged at $2.6 billion, indicating an increase of 5.4% from the year-ago reported quarter. Our estimate is pegged at $2.5 billion.
An improving rate environment is likely to have supported higher net investment income. Our estimate is pegged at $500.3 million.
Improved premiums and an increase in net investment income are likely to have aided top-line growth. The Zacks Consensus Estimate is pegged at $3.2 billion, suggesting an increase of 5.1% from the year-ago number.
Favorable benefits experience in group product lines, disciplined sales trends, strong persistency in group lines and growth of new product lines are likely to have favored Unum U.S. as well as Colonial Life segments. Our estimate for Unum US premiums is pegged at $1.7 billion and at $240.8 million for Colonial Life.
Growth in the in-force block, resulting from the impact of rate increases in the group long-term disability product line, and higher persistency are likely to have benefited Unum International in the to-be-reported quarter. Our estimate is pegged at $203.7 million.
Expenses are likely to have increased because of higher commissions, interest and debt expenses, amortization of deferred acquisition costs and compensation expenses. We expect total benefits and expenses to be $2.7 billion.
Continued share buybacks are likely to have provided a boost to the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at $1.97, indicating an increase of 5.4% from the year-ago reported figure.
Quantitative Model Prediction
Our proven model predicts an earnings beat for Unum Group this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), which increases the chances of an earnings beat.
Earnings ESP: It has an Earnings ESP of +0.25%. 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-eps-surprise | Unum Group Quote
Zacks Rank: Unum Group currently carries a Zacks Rank #3.
Other Stocks to Consider
Some other insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Kinsale Capital Group KNSL has an Earnings ESP of +4.35% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $3.33, indicating a year-over-year increase of 36.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
KNSL’s earnings beat estimates in each of the last four reported quarters.
Kemper Corporation KMPR has an Earnings ESP of +4.60% and a Zacks Rank of 1. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at 87 cents, indicating an increase of 185.3% from the year-ago reported figure.
KMPR earnings beat estimates in each of the last four reported quarters.
Skyward Specialty SKWD has an Earnings ESP of +7.99% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter 2024 earnings stands at 66 cents, indicating an increase of 57.1% from the year-ago reported figure.
SKWD earnings beat estimates in each of the last four reported quarters.
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Unum Group (UNM) : Free Stock Analysis Report
Kemper Corporation (KMPR) : Free Stock Analysis Report
Kinsale Capital Group, Inc. (KNSL) : Free Stock Analysis Report
Skyward Specialty Insurance Group, Inc. (SKWD) : Free Stock Analysis Report
