StanCorp Financial Group's (SFG) net income increased in the second quarter.
Earnings and Revenue
Both EPS and revenues failed to meet Wall Street expectations as The company posted EPS of 45 cents a share and revenues of $725.3 million. Analysts were expecting EPS of 56 cents a share and revenues of $736.2 million.
The company's net income for the quarter was $20 million. This is 12.4% higher than the year-ago quarter. Revenue climbed 2.7% from $706 million in the same period last year.
Company Fundamental Trends
The company's revenue has grown during at least each of the past four quarters on a year-over-year basis.
History Against Expectations
The company has now missed estimates in the last two quarters. In the first quarter, it missed expectations by 5 cents with net income of 79 cents versus a mean estimate of net income of 84 cents per share.
"Claims experience in our group long term disability business continues to reflect the headwinds of a weak economy including high unemployment and low interest rates," said Greg Ness, chairman, president and chief executive officer. "We are committed to obtaining and retaining profitable business and are actively taking pricing actions on both new and renewal business to address the unfavorable claims experience and the continued low interest rate environment. Despite the economic pressures on our group long term disability business, we continue to maintain a strong balance sheet and capital position."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.