Cincinnati Financial Q2 adjusted EPS misses estimates on higher catastrophe losses
CINF•Key quarterly figures
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $4.27 bln | $2.92 bln (5 Analysts) |
| Q2 Adjusted EPS | Miss | $1.43 | $1.84 (8 Analysts) |
| Q2 EPS | $8.05 | ||
| Q2 Combined Ratio | 100.80% | ||
| Q2 Dividend | $0.94 | ||
| Q2 Underwriting Loss | $18 mln |
Analyst coverage and valuation
The current average analyst rating on the shares is "buy," with 4 "strong buy" or "buy," 6 "hold," and no "sell" or "strong sell."
The average consensus recommendation for the property and casualty insurance peer group is "hold."
Wall Street's median 12-month price target for Cincinnati Financial Corp is $193.50, about 5.8% above its July 24 closing price of $182.81. The stock recently traded at 21 times the next 12-month earnings, versus a P/E of 18 three months ago.
Quarterly results and key drivers
Cincinnati Financial said second-quarter revenue rose 32%, beating analyst expectations, while adjusted EPS missed estimates, reflecting higher catastrophe losses.
Higher investment income was the main source of profits in Q2. Elevated catastrophe losses, especially in Ohio, weighed on results. Net written premiums rose 3% in Q2, driven by price increases and new agency appointments, but new business premiums declined.
