(UTR) - Unitrin, Inc - posted a 127.5% positive earnings surprise for the third quarter

Unitrin, Inc. (UTR) exceeded analysts’ earnings expectations in 11 out of the past 13 quarters by an average margin of 46.1%. Consensus estimates for both this quarter and for the full year have shot upward over the past two months. On Nov 1, the Board of Directors authorized an increase in its share repurchase program and also declared a quarterly cash dividend of 44 cents per share. This Zacks #1 Rank stock has a price-to-book ratio of 1.5, compared to 4.8 for the market. Full Analysis Unitrin, Inc. is a $3 billion financial services company that specializes in property and casualty insurance, life and health insurance and consumer finance for individuals, families and small businesses. UTR beat the Street’s earnings estimate in 11 out of the past 13 quarters by an average margin of 46.1%. In nine out of the 11 quarters, the company managed to surprise by at least a double-digit percentage. On Oct 31, UTR delighted investors when it posted a 127.5% positive earnings surprise for the third quarter. Earnings per share came in at $1.16, compared to the consensus estimate of 51 cents. Profits in the prior-year period amounted to 33 cents per share, marking a 251.5% year-over-year improvement for UTR. Total revenues climbed to $778.9 million, compared to $754.1 million for the third quarter of 2005. For the first nine months of the year, UTR’s profits rose 31.2% to $221.5 million from $168.8 million during the first nine months of 2005. Revenues climbed slightly to $2.31 billion from $2.29 billion. The company increased revenues and grew profits for three years running. Consensus estimates for both this quarter and for the full year have shot upward over the past two months. Estimates for this quarter jumped 21.8% to 95 cents, while profit forecasts for this year have risen 29.7% to $3.84. Earnings per share are projected to grow 10% over the next 3-5 years. On Nov 1, the Board of Directors authorized an increase in its share repurchase program by six million shares. At the time of the announcement, the company had 750,000 shares remaining under its previous authorization. During the third quarter, UTR bought back approximately 1.1 million shares of its common stock at a cost of $47.1 million. The Board also declared a quarterly cash dividend of 44 cents per share. UTR has a current dividend yield of 3.5% and a five-year average dividend yield of 4.4%. UTR is currently trading at a valuation of 13.2x both trailing 12-month and current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.5x trailing 12-month earnings and at 16.8x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.5, compared to 4.8 for the market. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home