Genworth Financial Inc Down 8.42% To $5.50 After Earnings Miss

Thursday, November 9, 2023 - Genworth Financial Inc (GNW) reported downside earnings and revenues today.

Wall Street earnings per share (EPS) projections for Genworth Financial Inc were at $0.22. The company missed those estimates with an EPS of $0.09. The earnings per share of $0.09 (which represents a -59% EPS surprise) led to the company's profits falling 71% compared to last year when the firm reported an EPS of $0.31. The decline in Genworth Financial Inc's annual growth rate represents how the business isn't performing well amid current economic conditions.

Consensus analyst estimates were at $2 billion. The Financial Services company missed on those expectations for its third quarter with revenue of $1.8 billion, a negative revenue surprise of $129 million (7%). The firm managed negative 0% growth year-over-year due to Genworth Financial Inc reporting quarterly revenue of $1.8 billion in its year-ago quarter. Genworth Financial Inc achieved a lower earnings growth rate than revenue, signaling that the business has not been able to improve its profit margin.

The stock is down 8.42% to $5.50 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Trading in the five days leading up to the report earned Genworth Financial Inc a Bearish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 63.

Genworth Financial is a diversified insurance holding company that provides various mortgage and life insurance products. The company has three main operating business segments: Enact, U.S. Life Insurance, and Runoff. The company's product portfolio includes various financial products such as traditional life insurance, mortgage insurance, fixed annuities, and variable annuities. Most of the revenue is generated by the company's U.S. life insurance segment that offers long-term care insurance, fixed annuity, and traditional life insurance products. The company earns most of its revenue in the United States.