The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Symetra Financial beat expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share grew significantly.
Margins expanded across the board.
Symetra Financial reported revenue of $561.6 million. The three analysts polled by S&P Capital IQ anticipated revenue of $507.9 million. Sales were 13% higher than the prior-year quarter's $495.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.38. The eight earnings estimates compiled by S&P Capital IQ averaged $0.34 per share on the same basis. GAAP EPS of $0.54 for Q4 were 20% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 35.1%, 120 basis points better than the prior-year quarter. Operating margin was 20.4%, 60 basis points better than the prior-year quarter. Net margin was 13.2%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $511.0 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $2.06 billion. The average EPS estimate is $1.33.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 56 members rating the stock outperform, and two members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Symetra Financial a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Symetra Financial is hold, with an average price target of $11.
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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.