The life and mortgage insurer reported earnings of 38 cents a share for the quarter. Analyst surveyed by Thomson Reuters estimated earnings of 30 cents a share. The company posted revenue of $2.39 billion for the quarter, compared to analysts' estimates of $2.38 billion.
Genworth's U.S. mortgage business in particular fared well in the quarter, posting operating income of $6 million. In the year-ago quarter, the business posted a loss of $32 million. The business, and the company as a whole, benefited from the recovering U.S. housing market as more Americans bought homes because of lower mortgage rates.
TheStreet Ratings team rates GENWORTH FINANCIAL INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about its recommendation:
"We rate GENWORTH FINANCIAL INC (GNW) a BUY. This is driven by multiple 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, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: