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PRI — Primerica News Story

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Primerica Q2 revenue rises on strong client demand, favorable equity markets

Primerica Q2 revenue rises on strong client demand, favorable equity markets


Overview

  • U.S. financial services distributor's Q2 adjusted revenue rose 8% but slightly missed analyst expectations

  • Adjusted EPS for Q2 increased 17%, beating analyst expectations

  • Company repurchased $135 mln of common stock during the quarter


Outlook

  • Company did not provide specific guidance or outlook for future quarters or the full year


Result Drivers

  • INVESTMENT SALES GROWTH - Record investment sales and higher client asset values driven by strong client demand and favorable equity markets

  • TERM LIFE STABILITY - Term Life business generated stable earnings and predictable cash flow due to large in-force policy block

  • LOWER NEW POLICY ISSUANCE - Fewer new life insurance policies issued and lower pre-tax income in Term Life segment


Company press release: ID:nBwb84xDGa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Adjusted Revenue

Slight Miss*

$863 mln

$870.61 mln (4 Analysts)

Q2 Adjusted EPS

Beat

$6.41

$6.03 (8 Analysts)

Q2 EPS

$6.45

Q2 Net Income

$202 mln

Q2 Adjusted operating income

$201 mln

Q2 ROE

32.10%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the life & health insurance peer group is "buy"

  • Wall Street's median 12-month price target for Primerica, Inc. is $309.00, about 2.9% below its August 4 closing price of $318.15

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • Aug 4 - Equitable Holdings Q2 adjusted EPS beats estimates as AUM rises

  • Aug 3 - Jackson Financial Q2 profit jumps on favorable hedging, annuity sales growth

  • Aug 4 - Voya Financial Q2 profit falls on lower investment income, severance costs


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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