Bank of America Comments on Genworth Financial After 2Q Results

Bank of America has published a report on Genworth Financial Inc. GNW reviewing Q2 performance. In the report, Bank of America wrote, "After the market closed on July 20th, Genworth preannounced a 2Q operating loss of $0.14-$0.18 per share (vs. a profit of $0.24), widely missing both our estimate of $0.21 per share and the Street's estimate of $0.24 per share. The majority of the miss came in U.S. Mortgage Insurance, where Genworth incurred a $300M charge ($0.39 per share after tax) to strengthen reserves. See page 2 for full variance analysis." Bank of America rated Genworth Financial an Underperform with a price target of $10.00. Genworth Financial closed WEdnesday at $9.47.