Cincinnati Financial (NASDAQ:CINF) Posts Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Key Points

• Earnings beat: Cincinnati Financial reported $2.10 EPS vs. a $1.93 consensus (beat by $0.17) and revenue of $2.86 billion (vs. $2.60B), with revenue up 11.6% year-over-year, a net margin of 18.94% and ROE of 8.45%.
• Dividend increase: the company raised its quarterly dividend to $0.94 from $0.87 (annualized $3.76), implying a ~2.3% yield and a payout ratio near 24.8%.
• Market and analyst context: shares rose about 0.7% after the report; Cincinnati Financial has a $25.8B market cap, a P/E of 10.9, and a consensus analyst rating of "Buy" with an average price target of $174.75.

Cincinnati Financial (NASDAQ:CINF - Get Free Report) posted its quarterly earnings data on Monday. The insurance provider reported $2.10 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.93 by $0.17, FiscalAI reports. Cincinnati Financial had a net margin of 18.94% and a return on equity of 8.45%. The business had revenue of $2.86 billion during the quarter, compared to analysts' expectations of $2.60 billion. During the same period last year, the firm posted ($0.24) earnings per share. The business's revenue was up 11.6% on a year-over-year basis.

Cincinnati Financial Trading Up 0.7%

Shares of NASDAQ:CINF opened at $165.64 on Tuesday. The stock has a market capitalization of $25.79 billion, a price-to-earnings ratio of 10.92, a PEG ratio of 4.34 and a beta of 0.63. Cincinnati Financial has a 1-year low of $133.48 and a 1-year high of $174.27. The company has a debt-to-equity ratio of 0.06, a quick ratio of 0.29 and a current ratio of 0.29. The company has a 50 day moving average price of $162.69 and a 200 day moving average price of $162.44.

Cincinnati Financial Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 24th were issued a dividend of $0.94 per share. The ex-dividend date was Tuesday, March 24th. This is a positive change from Cincinnati Financial's previous quarterly dividend of $0.87. This represents a $3.76 dividend on an annualized basis and a yield of 2.3%. Cincinnati Financial's payout ratio is 24.79%.

Analyst Ratings Changes

A number of research firms have weighed in on CINF. Keefe, Bruyette & Woods cut their target price on Cincinnati Financial from $191.00 to $190.00 and set an "outperform" rating for the company in a research report on Tuesday, April 7th. Weiss Ratings upgraded Cincinnati Financial from a "buy (b)" rating to a "buy (a-)" rating in a research report on Tuesday, April 21st. Bank of America dropped their price objective on Cincinnati Financial from $178.00 to $177.00 and set a "buy" rating on the stock in a research note on Tuesday, April 14th. Finally, Wall Street Zen lowered Cincinnati Financial from a "buy" rating to a "hold" rating in a report on Sunday, February 8th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and an average price target of $174.75.

Institutional Investors Weigh In On Cincinnati Financial

Institutional investors and hedge funds have recently modified their holdings of the stock. Virtu Financial LLC bought a new stake in shares of Cincinnati Financial during the 4th quarter worth $205,000. Compound Planning Inc. raised its position in shares of Cincinnati Financial by 11.0% during the fourth quarter. Compound Planning Inc. now owns 2,147 shares of the insurance provider's stock worth $351,000 after purchasing an additional 212 shares during the period. Claris Financial LLC acquired a new stake in shares of Cincinnati Financial during the fourth quarter worth $231,000. Mercer Global Advisors Inc. ADV lifted its holdings in shares of Cincinnati Financial by 4.3% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 113,035 shares of the insurance provider's stock valued at $18,461,000 after purchasing an additional 4,703 shares during the last quarter. Finally, Summit Global Investments acquired a new position in shares of Cincinnati Financial in the 4th quarter valued at $462,000. Institutional investors and hedge funds own 65.24% of the company's stock.

About Cincinnati Financial

Cincinnati Financial Corporation NASDAQ: CINF is an insurance holding company headquartered in the Cincinnati area of Ohio that provides property and casualty insurance products and related services. Founded as part of the Cincinnati Insurance group, the company operates through a set of insurance subsidiaries to underwrite and service policies for both personal and commercial customers. Cincinnati Financial is publicly traded and emphasizes underwriting discipline and long-term relationships with its distribution partners and policyholders.

The company's core business centers on property and casualty insurance, including homeowners, automobile, commercial casualty, commercial multi-peril, and specialty commercial coverages.