Assurant (NYSE:AIZ) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Assurant, Inc. (NYSE:AIZ) is scheduled to report Q3 earnings results after markets close for trading on November 2, 2020.

The company is expected to report earnings of $0.99/share on revenue of $2.115 billion. The consensus earnings per share (EPS) of $0.99/share is based on a poll of 4 analysts and represents a decline in eps of −41.5% over the same quarter last year, when the company reported earnings of $1.69/share.

The revenue forecast of $2.115 billion based on a poll of 2 analysts implies a year-over-year (YoY) decline in revenue of −15.4%. Last year the company reported $2.499 billion in revenue for the quarter.

Expected to report EPS contraction of −41.5% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $2,114.66 $2,499.30 −15.4%
EPS $0.99 $1.69 −41.5%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarters.

What are your expectations from Assurant, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $2.12 $2.75 29.7% Beat
Q1, 2020 $2.43 $2.64 8.5% Beat
Q4, 2019 $2.35 $2.25 −4.2% Missed
Q3, 2019 $1.66 $1.69 1.6% Beat
Q2, 2019 $2.12 $2.34 10.2% Beat
Q1, 2019 $2.15 $2.21 2.7% Beat
Q4, 2018 $0.42 $0.77 83.3% Beat
Q3, 2018 $1.01 $1.06 5.0% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 14.0%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 4, 2020 $107.29 $122.31 14.0% Increase
May 5, 2020 $100 $97.92 −2.1% Decline
February 11, 2020 $137.11 $136.69 −0.3% Decline
November 5, 2019 $126.63 $127.55 0.7% Increase

Fundamentals And Technical Analysis

Assurant, Inc. is currently trading at $123.16/share, down −2.2% for the day. The company is trading at approximately 86.4% of its 52-week high of $142.61/share. The company’s stock price is up 0.7% since the last earnings report and up 0.5% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 52.25 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:AIZ Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 18.99 and a forward P/E multiple of 13.34.

Assurant, Inc.’s current share price also implies a price-to-book (P/B) multiple of 1.23. The following table summarizes some other key fundamental ratios:

Data as of October 27, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $123.16
P/E Ratio 19.0x
P/E Ratio (Fwd) 13.3x
PEG Ratio 2.6
Total Debt / Total Capital 33.0%
Levered Free Cash Flow $881.2 million
EV / EBITDA −7.9x

Finbox

Assurant, Inc. is a mid-cap stock with a market capitalization of $7.346 billion and a total enterprise value of $8.926 billion. The company operates in the Financials sector and the Insurance industry.

Assurant, Inc., together with its subsidiaries, provides lifestyle and housing solutions that support, protect, and connect consumer purchases in North America, Latin America, Europe, and the Asia Pacific. The company operates through three segments: Global Lifestyle, Global Housing, and Global Preneed. The Global Lifestyle segment provides mobile device protection products and services, and extended service contracts for consumer electronics and appliances, as well as assistance services; vehicle protection and related services; and credit and other insurance services. The Global Housing segment offers lender-placed homeowners insurance, manufactured housing, and flood insurance; and renters insurance and related products, as well as voluntary manufactured housing insurance, homeowners insurance, and other specialty products. The Global Preneed segment provides pre-funded funeral insurance, final need insurance, and related services. The company was formerly known as Fortis, Inc. and changed its name to Assurant, Inc. in February 2004. Assurant, Inc. was founded in 1892 and is headquartered in New York, New York.

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