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 insurer Hartford Financial Services
So What: You want a turnaround? You've got it. After posting losses of more than $1 billion in both 2008 and 2009, the company is on pace to show its investors a nice profit for this year. The past losses were driven by a deep shade of red in Hartford's investment portfolio, so some rejiggering there, along with a turnaround in the markets, has led to big improvements. The $1.34 in per-share earnings was a drastic improvement on last year's $0.79 loss and the $0.98 per share that excludes certain one-time items came in ahead of analysts' estimates.
Now What: Beat and raise guidance. Beat and raise guidance. That simple phrase (best uttered like a chant) is like crack to Wall Street and Hartford delivered the good stuff. Not only did third quarter earnings beat expectations, but the company raised full year earnings per share guidance from a midpoint of $2.20 to $2.65. And even with today's excitement, that new guidance means that shares are currently changing hands at less than 10 times 2010 earnings.
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