Loews (L) Stock Gains Despite Earnings Miss, Lower Revenue

Loews (L) shares are higher after the company reported its third quarter financial results.
By Lindsay Ingram ,

NEW YORK (TheStreet) -- Shares of Loews Corp. (L) - Get Report were gaining 1.2% to $36.91 on Monday after the energy and insurance conglomerate reported its third quarter financial results.

Loews reported earnings of 50 cents a share for the third quarter, missing analysts' estimates of 59 cents a share for the quarter. The company said revenue fell 10% year over year to $3.17 billion in the quarter.

The lower revenue was due to lower premiums and casualty at the company's CNA Financial (CNA) unit, which fell by 2% to $1.53 billion in the quarter. A 17.3% decline in revenue at Diamond Offshore (DO), which saw revenue of $610 million in the quarter due to lower rig utilization, also brought down Loews' revenue.

"I am pleased with our solid third quarter results, which demonstrate Diamond Offshore's ability to execute on managing our costs and controlling downtime," Loews President and CEO Marc Edwards said in a statement. "During the quarter, our three newbuild drillships delivered operational efficiency of 99.3%, which directly benefits our topline and improves project economics for our clients."

TheStreet Ratings team rates LOEWS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate LOEWS CORP (L) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins.

You can view the full analysis from the report here: L

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