Genworth Financial (NYSE:GNW) Releases Earnings Results, Misses Expectations By $0.40 EPS

Key Points

• Genworth Financial reported quarterly EPS of -$0.12, missing the $0.28 consensus by $0.40; revenue of $1.04 billion also fell short of analyst estimates of $1.88 billion.
• Shares rose 1.5% to $9.16 after the results. Analysts’ average rating was Hold, with a consensus price target of $10.50.
• CEO Thomas McInerney and EVP Melissa Hagerman sold shares in reported transactions; company insiders own 1.80% of the stock.

Genworth Financial (NYSE:GNW - Get Free Report) issued its earnings results on Wednesday. The financial services provider reported ($0.12) EPS for the quarter, missing the consensus estimate of $0.28 by ($0.40), FiscalAI reports. Genworth Financial had a return on equity of 1.06% and a net margin of 2.87%. The business had revenue of $1.04 billion during the quarter, compared to analyst estimates of $1.88 billion.

Genworth Financial Stock Up 1.5%

Shares of Genworth Financial stock traded up $0.14 on Wednesday, hitting $9.16. 3,692,722 shares of the company traded hands, compared to its average volume of 3,335,863. The company has a 50-day moving average price of $9.56 and a 200 day moving average price of $9.11. The company has a quick ratio of 0.29, a current ratio of 0.29 and a debt-to-equity ratio of 0.15. Genworth Financial has a 12-month low of $7.84 and a 12-month high of $10.69. The company has a market cap of $3.46 billion, a PE ratio of 17.63 and a beta of 0.87.

Insider Buying and Selling at Genworth Financial

In related news, EVP Melissa Hagerman sold 14,708 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $9.91, for a total transaction of $145,756.28. Following the completion of the sale, the executive vice president directly owned 192,539 shares in the company, valued at approximately $1,908,061.49. This trade represents a 7.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Thomas McInerney sold 100,000 shares of Genworth Financial stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $10.53, for a total value of $1,053,000.00. Following the sale, the chief executive officer directly owned 5,068,883 shares of the company's stock, valued at approximately $53,375,337.99. The trade was a 1.93% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.80% of the stock is currently owned by company insiders.

Analyst Ratings Changes

Several research analysts recently weighed in on GNW shares. Weiss Ratings raised Genworth Financial from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, October 21st. Keefe, Bruyette & Woods lowered Genworth Financial from an "outperform" rating to a "market perform" rating and decreased their price objective for the stock from $11.50 to $10.50 in a research report on Friday, October 9th. Finally, Wall Street Zen raised Genworth Financial from a "sell" rating to a "hold" rating in a research note on Sunday, July 12th. One analyst has rated the stock with a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $10.50.

About Genworth Financial

Genworth Financial, Inc is an insurance holding company headquartered in Richmond, Virginia. The company's principal business is mortgage insurance, primarily through its majority-owned subsidiary, Enact Holdings, Inc Enact provides private mortgage insurance to lenders and mortgage investors, helping eligible borrowers obtain home loans with smaller down payments while reducing lenders' exposure to borrower default.

Genworth also manages long-term care insurance businesses and legacy insurance obligations in the United States.

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