Loews Looks A Bit Pricey Given Potential Margin Contraction
Loews Corp. - Asset Value And Subsidiary Success Mean 20% Upside
Wed, May 18, 5:38 PM
Nov. 2, 2015, 11:19 AM
- Q3 net income from continuing operations of $182M or $0.50 per share vs. $179M and $0.47 one year ago.
- Diamond Offshore earnings of $47M up from $25M a year ago. Last year had a $55M impairment charge - excluding this, earnings declined amid lower rig utilization and increased depreciation and interest expense. Boardwalk Pipeline earnings of $18M up from $8M. CNA Financial earnings of $190M up from $164M; investment loss of $29M vs. a gain of $24M a year ago.
- Book value per share (excl. AOCI) of $52.59 up from $50.32. Current price is $36.97.
- 8.7M shares repurchased during quarter for total cost of $328M. 16.3M shares repurchased in nine months ended Sept. 30 for $633M. 3.3M shares bought back during October for $120M. The float is over 360M shares.
- Conference call is underway
- Previously: Loews misses by $0.09 (Nov. 2)
- L +1.25%
Apr. 4, 2014, 8:41 AM
- In addition to February's revision from 175K in job gains to 197K, January is revised higher by 15K jobs to 144K.
- Average hourly earnings fell by $0.01 to $24.30. On a Y/Y basis, average hourly earnings are higher by 2.1%. The average workweek increased 0.2 hours to 34.5 hours, offsetting the net decline over the previous three months.
- The headline unemployment rate didn't fall as expected, but this came as people flocked back into the workforce to the tune of about 500K workers. The labor force participation rate rises to 63.2% from 63% previously. A year ago it was 63.3%.
- The broader U-6 unemployment rate rose to 12.7% from 12.6%. A year ago it stood at 13.9%.
- S&P 500 (SPY) futures pop just a bit higher, now +0.3%; the 10-year Treasury yield ticks down a basis point to 2.79%.
- S&P 500 ETFs: SPY, IVE, SH, SSO, SDS, IVV, VOO, SPXU, UPRO, SPXL, RSP, RWL, EPS, IVW, SPYG, RPG, RPV, SPYV, VOOG, BXUB, VOOV, TRND, SFLA, BXUC, BXDB, SPLX, FTA
- Treasury ETFs: TBT, TLT, TMV, SHY, IEF, TBF, PST, EDV, TTT, TMF, SBND, ZROZ, IEI, TLH, DLBS, TYO, DTYS, VGLT, BIL, UST, SHV, UBT, TBX, VGIT, TLO, VGSH, SCHO, GSY, DTYL, ITE, SCHR, LBND, TYD, TENZ, TYBS, DTUL, SST, DTUS, FIVZ, TUZ, TBZ, DFVL, DLBL, DFVS, TYNS
- Previously: 192K jobs gain in March about inline
Feb. 11, 2014, 3:12 PM
- Boardwalk Pipeline Partners (BWP +7.1%) lost nearly half its value yesterday after slashing its payout by more than 80%, but some analysts see a buying opportunity amid the carnage.
- Citigroup upgrades shares to Buy from Neutral, urging value investors to note the severity of yesterday’s move relative to where other midstream MLPs trade on a cash flow multiple basis; the firm figures BWP trades at 10.3x 2015 EBITDA and 9.4x 2016 EBITDA, more favorable than other midstream MLPs with similar challenges such as TC Pipelines (TCP) and Niska Gas Storage Partners (NKA).
- Given the weaker outlook, Morgan Stanley says BWP/Loews (L) made the wisest choice to substantially reduce the distribution rate while remaining able to fund the capital plan internally, preserving maximum value.
- Deutsche Bank is staying away, however, maintaining its Sell rating with a $12 price target (from $20), expecting a longer, slower restoration of distribution.
Feb. 10, 2014, 9:58 AM
- Boardwalk Pipeline Partners (BWP) -37.7% after declaring a $0.10/unit quarterly dividend, an 81% decrease from the prior dividend.
- Distributable cash flow of $139M for Q4 and $558M for FY 2013 represented respective decreases of 3% and 12% vs. 2012.
- Results were hurt by lower transportation revenues due to contract expirations and contract renewals and lower parking, lending and storage revenues due to decreased parking opportunities from a reduction in the level of and volatility in natural gas price spreads between time periods.
- The distribution cut prompts Credit Suisse to downgrade BWP to Underperform from Neutral with a $20 price target, down from $32.
- Loews (L), which owns 53% of BWP, is 3.8% lower; the company also released Q4 earnings.
Oct. 24, 2013, 9:59 AM
- Diamond Offshore (DO -3.2%) shares slide after Q3 earnings fell 47% Y/Y, pulled down by lost revenue and expenses related to customers with cash flow issues.
- Overall revenues fell 3% to $706M, as contract drilling revenue dropped 3% to $691M; analysts had expected $751M.
- Utilization for ultra-deepwater rigs rose to 93% from 75%.
- "The overall market remains stable, supported by Brent oil prices above $100 per barrel and ongoing rig demand," CEO Larry Dickerson says.
- DO, which is majority owned by Loews Corp. (L), says it is working to relocate rigs contracted to oil and gas producers with cash flow issues.
Sep. 4, 2013, 12:49 PM
- Loews (L +0.8%) is initiated with a Buy and $52 price target at Deutsche, which sees the company as the cheapest of its peer group, with said peer group being those investment firms funding investments with the cheap float of their insurance operations.
- Loews' P&C insurance subsidiary Cna Financial (CNA +2.2%) is likewise started at Buy with $42 price target. Analyst Joshua Shanker says years of underperformance has left a stock trading at a deep discount to its industry peers. "Recent pricing actions should likely result in margin expansion leading to a ROE that is approximately equivalent to, if not better than, the company's cost of capital."
Feb. 6, 2012, 8:15 AMLoews (L): Q4 EPS of $0.67 misses by $0.17. Revenue of $3.48B (-6.4% Y/Y) misses by $240M. Shares -1.1% premarket. (PR) | Feb. 6, 2012, 8:15 AM
Loews Corp. is a diversified holding company. The company operates through its subsidiary, CNA Financial Corp., which operates in four segments: CNA Specialty, CNA Commercial, CNA International and Other Non-Core. The CNA Specialty segment provides a broad array of professional, financial and... More
Industry: Property & Casualty Insurance
Country: United States
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