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Q3 earnings reports continued to drive the financial stocks that are either the week’s top or worst performers. Kemper (KMPR), RenaissanceRe Holdings (RNR), UWM Holdings (UWMC), and Apollo Global Management (APO) all reported earnings this week and were all in the winners’ column.
Among the week’s losers, Lincoln National (LNC), PayPal Holdings (PYPL), Brookfield Business Corp. (BBUC), and Assurant (AIZ) also posted earnings.
Kemper (KMPR) stock rose 19% the week ended Nov. 4 even as its Q3 GAAP EPS and revenue missed consensus estimates; Raymond James, however upgraded the stock to Outperform on a brighter outlook for future profitability as its auto rate filings in California are expected to be approved within the next six months; following KMPR,
RenaissanceRe Holdings (RNR) gained 18% during the week as its Q3 net premiums written beat the consensus estimate. The company had in October warned investors that it would post a net loss due to the negative impact of Hurricane Ian;
Surprisingly, a mortgage company, UWM Holdings (UWMC) climbed 17% after its Q3 loan originations increased from the prior quarter;
Chinese online brokerage firm Futu Holdings (FUTU) gained 15%; and
Private equity firm Apollo Global Management (APO) jumped 12% for the week as Q3 earnings topped the Wall Street consensus; management fees and assets under management increased and inflows held roughly stable with Q2.
For the week’s decliners, Lincoln National (LNC) sank the most, -36%, most of it occurring on Thursday after the insurer’s Q3 earnings reflected a $2.2B charge primarily related to updated assumptions on universal life insurance lapses; Morgan Stanley downgraded the stock to Equalweight;
PayPal Holdings (PYPL) saw its stock register most of its 13% weekly decline before it posted Q3 earnings after Thursday’s close. Softer-than-expected guidance due to slower consumer spending didn’t help the stock on Friday;
Jackson Financial (JXN), which offers annuities to retail investors, slid 13% for the week;
Brookfield Business Corp. (BBUC) dropped 12%; and
Insurer Assurant (AIZ) fell 10% after its Q3 revenue missed the consensus estimate. In the previous week, the company cut guidance for its 2022 adjusted EBITDA and adjusted EPS.
Contrasting with the PayPal (PYPL) decline, payment technology company Block (SQ), formerly known as Square, rose 12% on Friday alone as lower costs, and engaged users drove Q3 earnings and bolstered its outlook.
