NYSE$PRI

Primerica Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Primerica's Q1 2020 financial performance reflected growth in key areas, but net income and EPS decreased due to investment losses and market adjustments.

Primerica reported a 6% increase in total revenues, driven by strong sales in Term Life and Investment and Savings Products. However, net income and EPS decreased due to pre-tax realized losses on the invested asset portfolio and mark-to-market adjustments. Adjusted operating EPS increased by 18%.

  • Investment and Savings Products sales increased by 28% to $2.2 billion.
  • Issued Term Life policies grew by 11%.
  • Term Life Insurance net premiums grew by 10%, and adjusted direct premiums grew by 11%.
  • New life-licensed representatives grew by 5%.

Headline financials

Total Revenue

$525M

Previous: $495M+6.1%
EPS (adj)

$2.05

Previous: $1.74+17.8%
ISP Product Sales

$2.25B

Previous: $1.76B+27.8%
Average Client Asset Values

$66.6B

Previous: $61.5B+8.4%
Life-Licensed Sales Force

130.1K

Previous: 129.8K+0.2%
Dividend Per Share

$0.40

No prior period
Free Cash Flow

$72.5M

Previous: $79.2M-8.5%
Net Income

$72.5M

Previous: $79.2M-8.5%
Operating Income

$86.6M

Previous: $94.5M-8.3%
Gross Profit

$320M

Previous: $308M+3.8%
Cash & Equivalents

$273M

Previous: $280M-2.3%
Total Assets

$13.3B

Previous: $13.1B+1.5%
Stock-Based Comp

$11.2M

Previous: $10.9M+2.4%

Revenue & EPS history

Primerica · Revenue · Quarterly

$525M

Q1 2020+6.1%vs Q1 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Primerica · $541M total across 3 segments · Q1 2020

  • Term Life Insurance
    $328M+10.4%
  • Investment and Savings Products
    $185M+13.7%
  • Corporate and Other Distributed Products
    $28.6M-6.3%

Forward guidance

While the COVID-19 pandemic may adversely impact our financial results in the near-term, our strong momentum at its onset and the flexibility of our sales force and distribution model give us confidence that we will be able to navigate through this major health crisis and any economic downturn.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+1.1%

Avg return

30 days after

53%

34 / 64 earnings

Positive

+22.3%

Q3 2016

Best reaction

-14.0%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%-1.2%-4.1%
Q4 2025-1.3%+2.3%-1.7%
Q3 2025-2.1%+0.2%-0.8%
Q1 2025+2.3%+1.7%+1.8%
Q4 2024-3.9%-3.1%-1.6%
Q3 2024+5.0%+8.6%+6.8%
Q2 2024+3.4%+4.5%+5.8%
Q1 2024+0.6%+2.7%+3.5%
Q4 2023+0.4%+3.3%+2.9%
Q3 2023+0.7%+1.6%+3.0%
Q2 2023+0.5%-0.3%-6.7%
Q1 2023-1.2%-0.7%+5.5%
Q4 2022+9.0%+15.4%-2.3%
Q3 2022-3.2%-2.7%-1.2%
Q2 2022+0.1%+6.4%-4.0%
Q1 2022-14.0%-11.5%-7.5%
Q4 2021-10.7%-11.9%-14.4%
Q3 2021-8.0%-8.5%-14.8%
Q2 2021+2.6%+4.3%+4.9%
Q1 2021+0.3%+0.2%+1.8%
Q4 2020-3.4%-5.4%+1.0%
Q3 2020+5.1%+12.7%+23.5%
Q2 2020+8.4%+10.3%+4.1%
Q1 2020+3.0%+0.7%+12.6%
Q4 2019+5.7%+10.9%-27.6%
Q3 2019+0.0%+0.2%+5.2%
Q2 2019+2.8%-2.3%+4.7%
Q1 2019-2.9%-3.2%-9.1%
Q4 2018+2.6%+2.3%+4.3%
Q3 2018+2.3%+3.1%-4.5%
Q2 2018+3.0%+1.3%+6.1%
Q1 2018-2.2%-1.1%+6.3%
Q4 2017-1.9%-1.5%+6.2%
Q3 2017+12.2%+12.0%+15.3%
Q2 2017-2.0%-1.6%-11.9%
Q1 2017-8.1%-10.6%-14.5%
Q4 2016+1.8%+4.1%+5.7%
Q3 2016+22.3%+30.4%+27.3%
Q2 2016+4.0%+5.8%+10.2%
Q1 2016+1.3%
Q4 2015-2.4%
Q3 2015+2.3%
Q2 2015-8.6%
Q1 2015+0.5%
Q4 2014+1.0%
Q3 2014+2.1%
Q2 2014+0.7%
Q1 2014-4.3%
Q4 2013+9.5%
Q3 2013-0.8%
Q2 2013-1.0%
Q1 2013-0.2%
Q4 2012+2.1%
Q3 2012-1.0%
Q2 2012+6.0%
Q1 2011-1.7%
Q1 2012+1.9%
Q4 2011-0.2%
Q4 2010-0.2%
Q3 2011-1.8%
Q3 2010-1.8%
Q2 2010-1.0%
Q2 2011-1.0%
Q1 2010-0.6%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro