Loews' Second Quarter Earnings Report

Loews (NYSE:L) announced its results for the most recent quarter on July 30, 2012. 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.

Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days.SEE: 12 Things You Need To Know About Financial Statements

The Numbers:

Loews announced 14 cents per share versus the 70 cents per share estimate. Revenue fell 4.3% from the same period last year while EPS is down 77%. Excluding a ceiling test impairment charge, Loews adjusted net income in 2012 would have been $198 million, as compared to $250 million in the 2011 second quarter. The decrease is primarily due to lower earnings at Diamond Offshore Drilling, Inc. and decreased performance of equity and limited partnership investments at the parent company.

Loews saw falling revenues last quarter after rising 2.1% to $3.74 billion the quarter before. Loews reported profit of $56 million during the second quarter. According to the reported number, this is down 77.6% from last year's figures.

Looking Ahead:

Analysts have a more positive outlook about the company's results for next quarter. The average estimate for third quarter is 68 cents per share, an increase from 66 cents 60 days ago. When analyst increase earnings estimates investors can assume business has been stronger than first thought and is an encouraging sign for investors. The average estimate for the fiscal year is $3.09 per share, a rise from $2.94 90 days ago.