Genworth Financial Inc (GNW) Shares Tumble on Fourth Quarter Earnings Report


Shares of Genworth Financial Inc (NYSE:GNW) are down big this morning after the company released their fourth quarter financial results. The company reported a net loss of $292 million, or $0.59 per diluted share. While these numbers appear pretty bleak, in comparison to last year they are not all that bad. Last year’s fourth quarter saw the company report a net loss of $760 million ($1.53 per diluted share).

For 2015 as a whole, Genworth Financial Inc (NYSE:GNW) reported a net loss of $615 million ($1.24 per share). This also compares favorably to last years $1.24 billion loss ($2.51 per diluted share). However, it is the fact that the company said that they are suspending the sale of some products (traditional life coverage and fixed-annuity products) and planning to restructure the company, that has some shareholders bearish this morning.

“We are pleased with the continued strong performance of our mortgage insurance businesses,” said Tom McInerney, President and CEO. “In our U.S. life insurance businesses, we are actively pursuing multiple restructuring actions to separate and isolate our LTC business and narrow our commercial focus, including through the suspension of traditional life and fixed annuity sales.”

The stock is down 25.45% or $0.71 following the news, hitting $2.08 per share. Approximately 1.29M shares traded hands. GNW shares have declined 62.95% since July 1, 2015 and are currently downtrending. It has underperformed the S&P500 by 55.65%.

From a total of 6 analysts covering Genworth Financial (NYSE:GNW) stock, 1 rate it a “Buy”, 1 a “Sell”, and 4 a “Hold”. This means that 17% of the ratings are positive. The highest target price is $9 while the lowest target price is $3.50. The mean of all analyst targets is $6.16 which is 196.15% above today’s ($2.08) stock price. Genworth Financial was the topic of 12 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. UBS downgraded shares on November 4 to a “Sell” rating. Wood maintained GNW stock in a recent report from September 2 with a “” rating.

The institutional sentiment increased to 0.95 in Q2 2015. It’s up 0.09, from 0.86 in 2015Q2. The ratio improved, as 57 funds sold all their Genworth Financial Inc shares they owned while 107 reduced their positions. 41 funds bought stakes while 114 increased their total positions. Institutions now own 394.79 million shares which is 0.48% less than the previous share count of 396.68 million in 2015Q2.

Tipp Hill Capital Management Llc holds 5.09% of its total portfolio in Genworth Financial Inc, equating to 1.08 million shares. Solus Alternative Asset Management Lp owns 6.24 million shares representing 4.32% of their total US portfolio. Moreover, Hirzel Capital Management Llc has 3.48% of their total portfolio invested in the company, equating to 5.29 million shares. The Massachusetts-based New Generation Advisors Llc has a total of 2.75% of their portfolio invested in the stock. Valueworks Llc, a New York-based fund reported 835,525 shares owned.

Genworth Financial, Inc. is engaged in providing the insurance, retirement and homeownership needs of its customers. The company has a market cap of $1.03 billion. The Firm operates through three divisions: U.S. It currently has negative earnings. Life Insurance, Global Mortgage Insurance and Corporate and Other.