Loews Corporation (NYSE: LOW) reported its fourth quarter financial results before market open on Monday. The financial services company missed earnings estimates and reported weaker revenue growth, causing shares to fall by over 6%.
For the quarter, Loews reported operating revenue of USD 3.4 Billion and earnings per share of USD 36 cents per share. The Company’s earnings per share fell by 56.6% year-over-year and missed Zacks Consensus Estimate’s, who expected 32.1% higher.
Total expenses increased by 13.7% this year to USD 3.5 Billion primarily due to higher insurance claims and policyholders’ benefits as well as higher operating expenses.
CNA Financial’s revenue declined by 1.8% year-over-year to USD 2.4 Billion. The segment reported a net loss of USD 75 Million to Loews, compared to the USD 193 Million earned last year. CNA witnessed lower net investments in its limited partnership and common equity investment.
Boardwalk Pipeline’s revenue was USD 326 Million for the quarter, decreasing by 3.6% year-over-year. Net income for the segment plummeted by 82.8% to USD 55 Million. The Company said the decline was due to lower net transportation revenues.
Diamond Offshore’s revenue fell by 34.3% year-over-year to USD 234 Million. The decline was due to consistent market declines which affected the segments overall growth.
However, Loews Hotels’ segment was able to see revenue growth, but not enough to offset the major declines across its other segments. Loews Hotels’ reported revenue growth of 5.2% to USD 181 Million.