NEW YORK (TheStreet) -- Loews  (L - Get Report) shares are down nearly 3% Monday after the conglomerate's second-quarter results showed sales drops at two of its biggest subsidiaries.

The hotel, energy and financial services conglomerate reported a 44% fall in quarterly profit due to lower revenue from its energy and insurance businesses. Loews reported earnings of 46 cents a share, missing the consensus estimate of 70 cents a share. Revenue was $3.44 billion, missing analysts' estimates of $3.59 billion, according to Thomson Reuters data. In the same period of last year, the company earned 70 cents per share on revenue of $3.59 billion.

The company said its weaker-than-expected earnings results were hurt by soft sales at its subsidiaries insurance giant CNA Financial  (CNA - Get Report) and drilling company Diamond Offshore  (DO - Get Report).

CNA Financial, which makes up about two-thirds of Loews' revenue, posted a $125 million drop in sales. Diamond Offshore also reported lower sales due to weak demand for its drilling rigs amid the continued global supply surplus of oil. The company said CNA's earnings decreased in large part due to an $84 million charge related to a retroactive reinsurance agreement. 

Loews said in July it bought back an additional 3.3 million shares of its common stock at a cost of $127 million. Loews shares, at around $37, have fallen by 12% for the year to date and the past 52 weeks.


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 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 Ratings Report