Loews' Third Quarter Earnings Report

Loews (NYSE:L) announced its results for the most recent quarter on October 29, 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.

Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: 5 Tricks Companies Use During Earnings Season

The Numbers: Loews announced 45 cents per share versus the 70 cents per share estimate. Revenue for the quarter was $3.71 billion. EPS rose 12.5% while revenue climbed 8.1% from the same period last year. Loews' revenue rose last quarter after falling 4.3% to $3.39 billion in the second quarter. For the third quarter, the company reported net income of $177 million. According to the reported number, this is up 9.3% from last year's figures. Last quarter's profit increase comes after three consecutive quarters of year-over-year profit decreases. Profits declined 77.8% in the second quarter,3.9% three quarters ago, and 42.5% four quarters ago.



A Look Back: Net income has increased 47% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed more than fourfold from the year-earlier quarter.



Looking Ahead: Analysts have a more positive outlook about the company's results for next quarter. The average estimate for fourth 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. For the fiscal year, the average estimate has moved up from $2.94 a share to $3.09 over the last ninety days.