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.)