Loews Corporation (NYSE:L) reported first-quarter 2017 operating earnings of 81 cents per share, which beat the Zacks Consensus Estimate of 66 cents. Earnings increased substantially from 35 cents earned in the year-ago quarter.
The quarter witnessed better performance by CNA Financial (NYSE:CNA) , Boardwalk Pipeline Partners’ (NYSE:BWP) , Loews Hotels and improved results from the parent company’s investment portfolio. However, lower earnings at Diamond Offshore (NYSE:DO) and Boardwalk Pipeline were partial dampeners.
Including net investment gains, the company reported net income of 87 cents compared with 30 cents in the year-ago quarter.
Revenues
Operating revenues of $3.226 billion inched up 2% year over year. Improvement in net investment income fueled the improvement.
Behind the Headlines
Total expenses declined 6% year over year to $2.8 billion, mainly due to lower contract drilling expenses and other operating costs as well as a decrease in insurance claims & policyholders' benefits.
CNA Financial’s revenues increased 5.7% from the prior-year quarter to $2.3 billion. It reported net income attributable to Loews Corp. of $234 million as against $60 million in the year-ago quarter. The improvement may be attributed to higher net investment income, which in turn, was driven by limited partnership investments. Lower adverse reserve development added to the upside.
Boardwalk Pipeline’s revenues jumped 6% year over year to $368 million. Net income attributable to Loews Corp. increased 19% year over year to $37 million. The improvement was supported by revenues from growth projects recently placed in service.
Loews Hotels’ revenues grew about 2.4% year over year to $167 million. Income attributable to Loews jumped to $10 million from $3 million in the year-ago quarter. Earnings improved on higher joint venture equity income.
Diamond Offshore’s revenues declined 20% year over year to $377 million. Net income attributable to Loews plunged 72% year over year to $12 million owing to a soft operating environment.
Book value as of Mar 31, 2017 was $54.91 per share, up about 1.8% from $53.96 as of Dec 31, 2016.
Loews Corporation Price, Consensus and EPS Surprise
Loews Corporation Price, Consensus and EPS Surprise | Loews Corporation Quote
Zacks Rank
Loews currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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Boardwalk Pipeline Partners L.P. (BWP): Free Stock Analysis Report
Loews Corporation (L): Free Stock Analysis Report
CNA Financial Corporation (CNA): Free Stock Analysis Report
Diamond Offshore Drilling, Inc. (DO): Free Stock Analysis Report
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