The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Assurant met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share grew.
Margins expanded across the board.
Assurant tallied revenue of $2.11 billion. The two analysts polled by S&P Capital IQ predicted sales of $2.09 billion. Sales were 0.3% higher than the prior-year quarter's $2.11 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.65. The 11 earnings estimates compiled by S&P Capital IQ forecast $1.36 per share on the same basis. GAAP EPS were $1.73 for Q4 against -$1.74 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 58.6%, 3,850 basis points better than the prior-year quarter. Operating margin was 12.7%, 320 basis points better than the prior-year quarter. Net margin was 7.7%, 1,650 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.05 billion. On the bottom line, the average EPS estimate is $1.39.
Next year's average estimate for revenue is $8.30 billion. The average EPS estimate is $5.52.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 281 members out of 296 rating the stock outperform, and 15 members rating it underperform. Among 113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 111 give Assurant a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Assurant is outperform, with an average price target of $47.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.