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Atlanta, Georgia-based based Assurant, Inc. (AIZ) is a global provider of risk management solutions in the housing and lifestyle markets, protecting where people live and the goods they buy. With a market cap of over $10.2 billion, Assurant’s operations span the Americas, Indo-Pacific, and Europe. It is expected to release its fourth-quarter earnings on Tuesday, Feb. 4.
Ahead of the event, analysts expect Assurant to report a profit of $3.51 per share, down 23.4% from $4.58 per share reported in the year-ago quarter. However, the company has consistently surpassed Wall Street’s bottom-line projections in each of the past four quarters. While its adjusted EPS for the last reported quarter declined 30.1% year-over-year to $3.00, it surpassed the consensus estimates by 20%.
For the full fiscal 2024, analysts expect AIZ to deliver an adjusted EPS of $15.38, marginally down from $15.49 in fiscal 2023. While in fiscal 2025, its earnings are expected to surge 16.7% year-over-year to $17.95 per share.
AIZ stock has surged 21.8% over the past 52 weeks, matching the S&P 500 Index’s ($SPX) 21.8% gains but underperforming the Financial Select Sector SPDR Fund’s (XLF) 25.2% returns during the same time frame.
Assurant’s stock prices soared 6.9% in the trading session after the release of its better-than-expected Q3 earnings on Nov. 5. The company reported a 7% year-over-year growth in total revenues to approximately $3 billion, exceeding Wall Street’s topline expectation along with a massive positive earnings surprise which boosted investor confidence.
However, due to a massive 20.5% increase in policyholder benefits compared to the year-ago quarter to $776.8 million and a notable 7.4% rise in underwriting, selling, general and admin expenses to over $2 billion, its profitability took a sharp hit. The surge in these expenses led to a massive 29.6% decline in net income to $133.8 million.
Nevertheless, the consensus opinion on AIZ stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the seven analysts covering the stock, three recommend “Strong Buy” and four suggest a “Hold” rating. Its mean price target of $233.20 indicates a 17.2% upside potential from current price levels.
