Phoenix Cos Looking to Rise - Analyst Blog
The Phoenix Companies, Inc. (
PNX), which de-mutualized and went public in 2001, provides a diverse array of life insurance and wealth management products and services to affluent and high net-worth individuals and corporations across the U.S.
3Q08 operating results substantially missed expectations and came in at loss of $2.78 per share, versus a profit of $0.29 per share in the year-ago quarter. Excluding the $2.91 per share non-cash impairment charge related to goodwill and other intangibles in the Asset Management segment, results still missed expectations to come in at $0.13 per share.
The current credit environment and stressed economy will continue to weigh on the shares for at least a few more quarters. Nevertheless, the asset management segment's spin-off will benefit the company and will reduce volatility in its earnings going forward. Hence, our Hold rating remains on the shares of PNX.
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