Unum (UNM) got here out with quarterly earnings of $1.04 per share, beating the Zacks Consensus Estimate of $0.98 per share. This compares to earnings of $1.35 per share a yr in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 6.12%. 1 / 4 in the past, it was anticipated that this insurance coverage firm would put up earnings of $1.19 per share when it truly produced earnings of $1.15, delivering a shock of -3.36%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates two occasions.
Unum, which belongs to the Zacks Insurance coverage – Accident and Well being business, posted revenues of $2.99 billion for the quarter ended March 2021, surpassing the Zacks Consensus Estimate by 2.97%. This compares to year-ago revenues of $3.02 billion. The corporate has topped consensus income estimates thrice during the last 4 quarters.
The sustainability of the inventory’s quick worth motion primarily based on the recently-released numbers and future earnings expectations will largely rely upon administration’s commentary on the earnings name.
Unum shares have added about 25.4% for the reason that starting of the yr versus the S&P 500’s achieve of 10.9%.
What’s Subsequent for Unum?
Whereas Unum has outperformed the market thus far this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There aren’t any straightforward solutions to this key query, however one dependable measure that may assist traders handle that is the corporate’s earnings outlook. Not solely does this embrace present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified these days.
Empirical analysis exhibits a robust correlation between near-term inventory actions and tendencies in earnings estimate revisions. Traders can monitor such revisions by themselves or depend on a tried-and-tested score device just like the Zacks Rank, which has a formidable monitor document of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Unum was blended. Whereas the magnitude and route of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out according to the market within the close to future. You may see the entire checklist of at present’s Zacks #1 Rank (Robust Purchase) shares right here.
It is going to be attention-grabbing to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $1.19 on $2.89 billion in revenues for the approaching quarter and $4.75 on $11.6 billion in revenues for the present fiscal yr.
Traders must be conscious of the truth that the outlook for the business can have a fabric affect on the efficiency of the inventory as effectively. By way of the Zacks Business Rank, Insurance coverage – Accident and Well being is at present within the backside 23% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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Unum Group (UNM): Free Inventory Evaluation Report
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