AmerUs, EMC, FBL expect strong quarterly earnings

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Analysts expect three of Central Iowa’s publicly traded insurance companies to report strong earnings for the first three months of 2005, but financial services powerhouse Principal Financial Group Inc. probably will post a decrease from its year-ago results.

Here’s a look at the forecasts and recent developments for eight companies that will report results in the coming days and weeks.

AmerUs Group Co. is predicted to report a revenue increase of 8 percent when it reports its first-quarter numbers April 25. The analyst making that forecast said the life insurance and annuity company could report $427 million in revenue compared with $397 million a year ago. The consensus of five analysts is that earnings per share will be $1.09 compared with 99 cents in the first quarter of 2004.

AmerUs Chairman and Chief Executive Officer Roger Brooks, who has announced that he will retire at the end of the year, made several sizable purchases and sales of company stock in March. He sold 128,509 shares at $49.08 per share on March 14 and on the same day exercised an option to buy 195,000 shares at $20.

EMC Insurance Group Inc. is expected to post a hefty 23 percent increase in first-quarter revenues, rising to $112 million from $91 million a year ago. However, its earnings per share could fall to 68 cents from 70 cents in 2004. The property and casualty insurer’s stock has traded in a range from $17.02 to $25.51 over the past year. The company expects to release its first-quarter financials on April 28.

FBL Financial Group plans to report first-quarter results May 9, and three analysts predict an 8 percent growth in earnings per share, rising to 50 cents from 46 cents. The life insurance, annuity and mutual fund company announced in February a 5 percent increase in the quarterly cash dividend on its Class A and B common stock, raising it to 10.5 cents per share from 10 cents.

FBL announced executive stock options, bonuses and grants in a March 18 filing with the Securities and Exchange Commission. Company CEO William Oddy received options valued at $1.2 million, a bonus of $302,000 and grants currently worth $400,000 that are based on meeting future performance criteria.

Maytag Corp. will have more bad news to report when it summarizes its first-quarter performance; analysts expect revenues to drop 4 percent compared with year-ago results. They said the Newton-based appliance maker will report $1.18 billion in revenues compared with $1.22 billion in the first quarter of 2004. Earnings per share could drop 64 percent to 20 cents per share compared with 56 cents per share a year ago.

Maytag’s stock hit a 52-week low of $13.30 on March 29 after ranging as high as $32.21 during that period.

Meredith Corp. appears to be on track for an increase in revenues in its fiscal third quarter, which ended March 31. When the publishing and broadcasting company reports earnings April 26, it could post revenues of $304 million compared with $300 million a year ago, according to analysts. Earnings per share are seen rising to 68 cents from 64 cents.

Meredith had been mentioned as a likely bidder for F+W Publications Inc., but in a presentation at a Banc of America Securities event March 29, Meredith Chairman and CEO William Kerr said the company is “not pursuing that acquisition.” However, Kerr said Meredith is pursuing other acquisitions in both publishing and broadcasting.

Principal Financial Group Inc. is expected to report first-quarter earnings May 2, and analysts who follow the company forecast a 3 percent drop in revenues. They predict revenues of $2.19 billion compared with $2.26 billion in the same period a year ago.

In March, analysts at Banc of America Securities issued a “neutral” rating on Principal’s stock and set a $38 target price. The stock has traded in a range from $32 to $41.96 over the past 52 weeks.

Sauer-Danfoss Inc., a German-controlled company with corporate headquarters in Ames, will report earnings May 10. The maker of hydraulic systems and components is expected to report a large increase in earnings per share — 42 cents per share compared with $0.23 in the first quarter of 2004.

The company has increased its quarterly cash dividend to 12 cents per share from the previous rate of 10 cents.

West Bancorporation Inc., the parent company of West Bank in West Des Moines, is expected to earn $1.20 per share for the entire year of 2005, according to one analyst, compared with $1.11 in 2004. Over the past 52 weeks, the banking company’s stock price has fluctuated between $13.93 and $19.25.

West Bancorporation will hold its annual shareholders’ meeting April 12 at 4:30 p.m. at 1601 22nd St., West Des Moines.