Banking, finance, and taxes
Loews Earnings Stung by Low Energy Prices
Published:
Last Updated:
On a GAAP basis, the company posted EPS of $0.62 in the quarter, compared with $0.92 in the same period a year ago. GAAP earnings include a noncash ceiling test impairment charge of $92 million at Loew’s wholly-owned HighMount Exploration & Production. In the year-ago quarter, a similar noncash impairment charge reduced net income by $28 million. The ceiling test assesses the carrying value of the company’s natural gas and oil properties.
Loews was hit hard in the fourth quarter by the effect of Hurricane Sandy on its CNA insurance group. In the first quarter, the firm attributed the drop in net income to “reduced parent company investment income as a result of lower performance for the trading portfolio.” In other words, picking losers. Investment income in the first quarter of 2012 totaled $76 million compared to just $7 million in the first quarter of 2013.
Loews did not offer guidance in its news release, but the consensus analysts’ estimate for the second quarter calls for EPS of $0.82. For the year, the estimates call for EPS of $3.41 on revenues of $13.29 billion.
Shares are inactive in this morning’s premarket trading, and closed down about 1.3% on Friday, at $44.44 in a 52-week range of $38.14 to $45.20. The 52-week high was set last week. The consensus target price for the shares was $46.00 before today’s report.
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.