Primerica Q3 adjusted EPS beat estimates on higher premiums

Reuters
Nov 06
<a href="https://laohu8.com/S/PRI">Primerica</a> Q3 adjusted EPS beat estimates on higher premiums 

Overview

  • Primerica Q3 adjusted revenue and EPS beat analyst expectations

  • Record ISP sales of $3.7 bln, up 28% yr/yr

  • Company repurchased $129 mln of common stock during the quarter

Outlook

  • Company did not provide specific guidance for future quarters or full year in the statement

Result Drivers

  • ISP SALES GROWTH - Record ISP sales of $3.7 bln, up 28% yr/yr, driven by strong demand and favorable equity markets

  • TERM LIFE PREMIUMS - Term Life net premiums increased 3% with adjusted direct premiums growing 5%, despite a 15% decline in new policies issued

  • ACTUARIAL ASSUMPTION REVIEW - Annual actuarial assumption review resulted in a net remeasurement gain of $23.1 mln, impacting earnings positively

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted Revenue

Beat

$838.90 mln

$825.39 mln (5 Analysts)

Q3 Adjusted EPS

Beat

$6.33

$5.54 (9 Analysts)

Q3 EPS

$6.35

Q3 Net Income

$206.80 mln

Q3 Adjusted operating income

$206.10 mln

Q3 ROE

35.90%

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the life & health insurance peer group is "buy."

  • Wall Street's median 12-month price target for Primerica Inc is $320.00, about 18.6% above its November 4 closing price of $260.41

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw5qXxqka

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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