Why National Financial Partners Shares Popped

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of National Financial Partners (UNKNOWN: NFP.DL  ) , an advisory and brokerage firm to high net-worth individuals, jumped as much as 18% after reporting its fourth-quarter earnings results.

So what: For the quarter, National Financial Partners recorded cash earnings from its businesses of $0.85. Wall Street had only been expecting the company to report a profit of $0.70. National Finance pegged a dramatic drop in its effective tax rate, from 40% in the year-ago quarter to 9% this quarter, because of the disposition of certain life insurance businesses as one of the big drivers of its EPS jump. Revenue for the quarter advanced 3.8% to $300.1 million with organic growth of 2.7%.

Now what: Yes, high net-worth individuals can be very fickle with their investing activities, but National Finance Partners appears to be making all the right moves. The company is intent on repurchasing shares as necessary and making earnings accretive acquisitions going forward. With taxes on upper income earners rising in the U.S., I'd expect National Financial Partners' business will grow even more robust as high income earners seek assistance in their wealth building plans. Needless to say, the stock could have more room to run from here.

Craving more input? Start by adding National Financial Partners to your free and personalized Watchlist so you can keep up on the latest news with the company.

With so many of the big finance firms getting bad press these days, you may be inclined to stay away from the sector entirely, but that could be a huge mistake. In fact, some of the best opportunities over the next few years can be found there, including one small, under-the-radar bank. It's been called one of "The Stocks Only the Smartest Investors Are Buying." You can learn about it, and more, in our exclusive free report. Just click here to keep reading.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2259504, ~/Articles/ArticleHandler.aspx, 9/26/2016 8:21:34 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
NFP.DL $0.00 Down +0.00 +0.00%
National Financial… CAPS Rating: No stars