Manufacture's Life needs Consistency
On August10 MFC (Manufacturers' Life Insurance) will report it's second quarter results.It showed a big improvement in the first quarter over the preceding quarter.And it needs a little more this quarter.Analysts are again expecting an increase in sales in their Chinese operation.Fully diluted earnings were $.02 per share in the fourth quarter of 2016 and jumped to $.66 per share in Q1.This blog looks for a 20% increase in sales in China and only minimal increase in Canada and USA.Increases in sales for MFC do not translate to earnings on a dollar for dollar basis.There is an outside chance that e.p.s could hit $.75 for the quarter,but $.71 to $.72 is more likely.This would put MFC on track to hit $2.15 to $2.25 per share for 2017.This would be a whopping 50% increase.
2016 was a Good Year
All financial indicators jumped up from the bad year experienced in 2015.Sales were up about 60%.Net income and earnings per share (e.p.s) were both up by 40%.However e.p.s was only at $1.45 per share and only supported a price of around $20 to $22 per share with industry P/E ratios.With good numbers this quarter MFC could be ready to show steady growth and on track to earn more than $2.00 per share.
The Second Quarter could set the Trend
If the second quarter shows the steady growth described above then MFC is headed for earnings of at least $2.00 per share.Manufacturer's also will feel some impact from the interest rate rise and one more to come in the fall.So $2.00 per share should be a minimum for 2017.But if they do earn it then with the industry P/E ratio look for MFC to be in a range between $28 and $30 per share by Christmas. use Blogdaleupsome for financial analysis ; use Blogdaleupsome for different perspectives ;user Blogdaleupsome for analysis of insurance companies
2016 was a Good Year
All financial indicators jumped up from the bad year experienced in 2015.Sales were up about 60%.Net income and earnings per share (e.p.s) were both up by 40%.However e.p.s was only at $1.45 per share and only supported a price of around $20 to $22 per share with industry P/E ratios.With good numbers this quarter MFC could be ready to show steady growth and on track to earn more than $2.00 per share.
The Second Quarter could set the Trend
If the second quarter shows the steady growth described above then MFC is headed for earnings of at least $2.00 per share.Manufacturer's also will feel some impact from the interest rate rise and one more to come in the fall.So $2.00 per share should be a minimum for 2017.But if they do earn it then with the industry P/E ratio look for MFC to be in a range between $28 and $30 per share by Christmas. use Blogdaleupsome for financial analysis ; use Blogdaleupsome for different perspectives ;user Blogdaleupsome for analysis of insurance companies
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