On Thursday after the market close, Genworth Financial reported earnings of 13 cents a share for the quarter, below analysts' estimates of 22 cents a share. Revenue fell 4.1% year over year to $2.1 billion for the quarter, compared to analysts' estimates of $2.18 billion.
"Our Global Mortgage Insurance Division is performing well with strong loss ratios and U.S. MI made substantial progress towards PMIERs compliance. Long term care insurance remains challenged, but we continue to receive significant premium rate increases and claims experience remained in line with our expectations," President and CEO Tom McInerney said in a statement.
Analyst firm BTIG cut its price target for Genworth Financial to $10 from $13, reiterating its "buy" rating, following the company's third quarter earnings report.
"As the release of Genworth Financial's 3Q15 results approached, we observed that insofar as the means through which the company will be able to maximize the value of shares is through a split of the company into two entities - one that would include its U.S. Life and Long Term Care (LTC) units, and another that would include its mortgage insurance subsidiaries - management would need to demonstrate that the individual businesses that would be included in those entities are stable," BTIG analysts wrote.
TheStreet Ratings team rates GENWORTH FINANCIAL INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
We rate GENWORTH FINANCIAL INC (GNW) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: GNW