Globe Life and Eagle Bank Beat Earnings

Today was a very good day for our Buy List. We were up 1.09% today which was 0.52% better than the S&P 500.

The nice earnings reports certainly helped. Silgan Holdings (SLGN) gained 7.8% and Stepan (SCL) was up by 3.4%. Check Point Software (CHKP) had been up by 5% earlier today but it eventually closed down by 1.1%.

After the closing bell, Globe Life (GL) reported fiscal Q2 operating earnings of $1.65 per share. The beat expectations of $1.53 per share.

Here are some highlights:

• Net income as an ROE was 9.4% for the six months ended June 30, 2020. Net operating income as an ROE excluding net unrealized gains on fixed maturities was 13.6%.
• Life premiums increased over the year-ago quarter by 8% at the Direct to Consumer Division and 7% at the American Income Life Division.
• Health premiums increased over the year-ago quarter by 7% at the Family Heritage Division.
• Life net sales at the Direct to Consumer Division increased over the year-ago quarter by 43%.
• Health underwriting margin increased over the year-ago quarter by 7%.

Also after the bell, Eagle Bancorp (EGBN) reported earnings of 90 cents per share. That beat expectations of 74 cents per share.

While the country at large experienced a very challenging environment in the second quarter of 2020 due to the COVID-19 pandemics extensive negative impacts to businesses and the economy in general, the banking industry faced significant related credit and interest rate challenges. In spite of these second quarter headwinds, we believe our Company has managed well, both in terms of our employee base staying healthy as well as staying in close contact with our many business relationships. As a result, we are pleased to report another quarter of overall favorable earnings, highlighted by continued growth in average loans and deposits, favorable operating leverage, and improved noninterest income, noted Susan G. Riel, President and Chief Executive Officer of Eagle Bancorp, Inc. Ms. Riel continued, The Companys assets ended the quarter at $9.8 billion, representing 13% growth over the second quarter of 2019. Second quarter 2020 earnings resulted in a return on average assets (ROAA) of 1.12%, return on average common equity (ROACE) of 9.84%, and a return on average tangible common equity (ROATCE) of 10.80%.

We have two more earnings reports tomorrow.

Posted by on July 22nd, 2020 at 4:16 pm


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