Earnings Preview: What to Expect From Assurant's Report

Atlanta-based Assurant, Inc. (AIZ) is a global provider of risk management solutions in the auto, housing, and lifestyle markets, protecting where people live and the goods they buy. With a market cap of $10.1 billion, Assurant’s operations span the Americas, Indo-Pacific, and Europe. It is expected to release its Q3 earnings after the market closes on Tuesday, Nov. 5.

Ahead of the event, analysts expect Assurant to report a profit of $3.28 per share, down 23.5% from $4.29 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s adjusted EPS projections in each of the past four quarters. Its adjusted EPS for the last reported quarter grew by 4.9% year-over-year to $4.08, surpassing the consensus estimates by 14%.

For fiscal 2024, analysts expect AIZ to report an adjusted EPS of $16.24, up 4.8% from $15.49 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 7.9% year-over-year to $17.52.

AIZ has gained 15.6% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 21.9% gains and the Financial Select Sector SPDR Fund’s (XLF) 24.7% returns during the same time frame.

Shares of Assurant experienced marginal gains and maintained a positive momentum for the next six trading sessions after the release of its better-than-expected Q2 earnings on Aug. 6. The company reported a robust 7.1% year-over-year growth in revenues, reaching $2.9 billion, exceeding Wall Street’s topline expectations, driven by higher net earned premiums, fees and other income. Moreover, its net income grew by a staggering 20.7% year-over-year, totaling $188.7 million, driven by a 73 basis point net margin expansion to 6.5%.

The consensus opinion on AIZ stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the seven analysts covering the stock, four recommend “Strong Buy” rating, and three suggest a “Hold.” The mean price target of $218.80 suggests a potential upside of 12.3% from current price levels.

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.