Manufacture's Life still controversial

    Manufacturer's Life Insurance recently reported it's second quarter results.And consequently C.I.B.C. lowered it's rating from outperform to sector perform.The Manufacturer's CEO called the earnings disappointing.However MFC earnings would have been a little bit better if interest rates had just been a little higher;this was somewhat offset by macro-hedging. In addition,new business was up 34% and total insurance sales were $915 million.Analysts were divided on net income;some analysts said it was C$833 million and some said  C$704 million. But results  were less than the first quarter and that was disappointing.
    Operational Data
     Manufacturer's breaks net income down by area so it can see which area needs improving.Net income from Asia was $206 million or up 16%.The Canadian division net income was up 90% to$333 million and the U.S. division  net income was doubled to $316 million.Net income per share (depending on which estimate is taken) fell to $.34 to $.38 per share;this is down from the first quarter at $.51 but ahead of the first quarter of 2015. None of the financial websites show guidance for annual shareholder income nor earnings per share.This blog predicted annual earnings per share of $2.00 to $2.25 per share in my last blog  and MFC is still on track to get there.Then it predicted that these earnings should support a share price of $18 to $22 as that will produce a low P/E ratio for a solid company with growth.It is below the bottom end of this range today but should move up as the TSX index heads towards 15,000.               

    use Blogdaleupsome for financial analysissee update on MFC still on track;