Hartford Financial Services EPS Significantly Above J.P. Morgan Estimate

Hartford Financial Services HIG reported 3Q10 core EPS of $1.43, J.P. Morgan reports. Results included several unusual items, adjusted for which we estimate that the company would have earned $1.10, “significantly above our $0.86 estimate.” “We affirm our Overweight rating,” J.P. Morgan writes. “In our view, fundamentals in HIG's business will remain weak, and we forecast the company to generate marginal EPS growth in the next few years.” “However,” J.P. Morgan continues, “we believe that the operating trends are bottoming and the balance sheet has stabilized. Also, we feel that Hartford's valuation already reflects the challenges facing the company and the risk-reward seems attractive, especially for investors with a positive bias towards the equity and credit markets.” Hartford Financial Services currently trades at $23.42.