NEW YORK (TheStreet) -- Genworth Financial (GNW) was falling -7.6% to $15.02 Wednesday after missing analysts' estimates for earnings in the second quarter and reporting low Long Term Care Insurance operating income for the quarter.
For the second quarter Genworth Financial reported earnings of 35 cents a share, missing analysts' estimates of 36 cents a share by 1 cent. Revenue grew 1.7% year-over-year to $2.41 billion for the quarter. Analysts surveyed by Thomson Reuters expected revenue of $2.36 billion for the quarter.
Long Term Care Insurance operating income dropped to $6 million for the quarter, compared to $26 million in the year-ago quarter as claims increased. Genworth said it is "conducting a comprehensive review of the adequacy of its claims service," adding that it expects to complete review before announcing results for the third quarter.
Must read: Warren Buffett's 25 Favorite StocksSTOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates GENWORTH FINANCIAL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate GENWORTH FINANCIAL INC (GNW) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins." GNW data by YCharts STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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