(AIZ) - Assurant, Inc - beat the consensus earnings estimate in 10 out of the past 11 quarters by an average margin of 21.7%

Assurant, Inc. (AIZ), first highlighted as a Value stock on Feb 1, is up nearly 23%. The company exceeded analysts’ earnings expectations in 10 out of the past 11 quarters by an average margin of 21.7%. On Nov 10, the Board of Directors declared a quarterly cash dividend of 10 cents per share of stock and approved the repurchase of up to $600 million of its common stock. This Zacks #1 Rank stock has a price-to-book ratio of 1.9, compared to 4.8 for the market. Full Analysis Assurant, Inc., through its subsidiaries, provides creditor-placed homeowners insurance; manufactured housing homeowners insurance; debt protection administration; credit insurance; warranties and extended services contracts; individual health and small employer group health insurance; group dental insurance; group disability insurance; group life insurance; and pre-funded funeral insurance. AIZ, which was first presented as a Value pick on Feb 1, continues to trade at a discounted valuation. Moreover, the company continues to top analysts’ earnings expectations, while earnings estimates are still trending higher. Nearly a year later, AIZ still wears the crown of a Zacks #1 Rank stock. AIZ beat the consensus earnings estimate in 10 out of the past 11 quarters by an average margin of 21.7%. In nine out of the 10 quarters, the company surprised by a double-digit percentage. AIZ missed by only a penny in the one quarter in which it failed to beat the Street. On Nov 1, AIZ reported third-quarter profits of $1.20 per share. The result equated to a 21.2% positive earnings surprise with analysts calling for only 99 cents per share. Compared to the third quarter of 2005, earnings soared 30.4%. Net premiums earned jumped 6.2% to $1.72 billion from $1.62 billion in the prior-year period. President and CEO Robert B. Pollock stated, “Our strong results this quarter demonstrate our focus on products we believe offer the best long-term profitable growth as well as the strength of our diversified specialty insurance strategy.” For the first nine months of the year, profits increased 25.8% to $466.5 million from $370.8 million for the first nine months of 2005. Net premiums earned rose 4.1% to $5.08 billion, compared to $4.88 billion in the same period last year. Consensus estimates for this year experienced a 16-cent leap to $4.70 over the past 60 days. Profit forecasts for next year are up 10 cents to $4.88 over the same period of time. Earnings per share are projected to grow 10% over the next 3-5 years, in line with that of the industry average. On Nov 10, the Board of Directors declared a quarterly cash dividend of 10 cents per common share of stock. The Board also approved the repurchase of up to $600 million of its common stock. AIZ stated that the new buyback program will begin once its current $400 million repurchase program has been completed. The company has a current dividend yield of 0.71%. AIZ is currently trading at a valuation of 12.0x trailing 12-month earnings and at 11.5x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.3x trailing 12-month earnings and at 15.6x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 1.9, compared to 4.8 for the market. AIZ’s return on equity of 17% betters the industry average of 13%. 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