Citi Reports Weak 1Q for StanCorp Financial (SFG)

In a recent report from Citi, the first quarter earnings for StanCorp Financial SFG were lower than expected and now, 2011 is clouded with uncertainty for the company. Citi explains, “Operating EPS $0.76 for 1Q11 was within recent downwardly revised guidance of $0.75-$0.77, but well short of our original $1.22E despite $0.04/share boost from each of 50 bps rise in the LTD claim reserve discount rate and bond call premiums.” Although group sales increased 3.3%, poor quality underwriting and limited available capital seem to be an issue for StanCorp Financial. StanCorp Financial has a price target of $45 and a Hold rating. At closing yesterday, StanCorp Financial was trading at $43.05.