Filed Under: ,
Tickers in this Article: L
Loews (NYSE:L) will announce its third quarter earnings on Monday, October 29, 2012. Analysts have become increasingly bullish on the company in the last month, with consensus earnings per share estimate moving up from 67 cents a share to the current expectation of earnings of 72 cents a share.

Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Everything Investors Need To Know About Earnings

What to Expect: Analysts are expecting Loews to report earnings of 72 cents per share, up 63.6% from a year ago, when the company reported earnings of 44 cents per share.

The figure has risen from 68 cents over the past three months. For the fiscal year, analysts are expecting earnings of $2.81 per share.

Revenue of $13.16 billion is expected for the fiscal year.

Company Performance: Over the last four quarters, revenue has dropped by an average 3.9%. The sharpest fall was a drop of 7.1% from the year-earlier quarter in the third quarter of the last fiscal year.

The P/E ratio for L is 19.5, above the industry average of 7.54. Generally speaking, the higher the P/E ratio, the higher the market expectations for a company's future performance. A simple P/E ratio can reveal the stock's real market value and show how the valuation compares to its industry group or a benchmark like the S&P 500 Index. High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: The P/E Ratio: A Good Market-Timing Indicator

The stock price has increased from $40.99 on July 26, 2012 to $41.81 over the past quarter. Loews' best recent streak was when its price gained $1.69 per share between October 12, 2012 and October 18, 2012.

The Competition: Through its subsidiaries, Loews is involved in commercial property and casualty insurance, operation of offshore oil and gas drilling rigs, production of natural gas and liquids, operation of interstate natural gas pipeline, and operation of hotels. Analysts generally consider Loews a hold, with one of two analysts rating it as such. The rating has remained unchanged for the past three months.

The company's closest competitor in the insurance (prop. and casualty) industry is AIG (AIG). Analysts are more optimistic about Loews than about AIG. Only 10 out of 18 analysts rate the latter a buy compared to one of two for the former.

comments powered by Disqus

Trading Center