Earnings per share (EPS) of $1.01 missed the estimated $1.16, marking a negative surprise of 11.21%.
Revenue for the quarter was $3.63 billion, surpassing the estimated $2.68 billion and indicating consistent outperformance in revenue estimates.
The company’s net income was $274 million, with a noted decline in core income and Property & Casualty segment earnings due to lower underwriting results.
CNA Financial Corporation (NYSE:CNA) is a prominent player in the insurance industry, specifically within the Property and Casualty sector. The company provides a range of insurance products and services, catering to both individual and business clients. CNA competes with other major insurers in the market, striving to maintain its position through strategic financial management and product offerings.
On May 5, 2025, CNA reported earnings per share (EPS) of $1.01, which fell short of the estimated $1.16. This represents a negative surprise of 11.21%, as highlighted by Zacks. The earnings also reflect a decline from the $1.30 per share reported in the same quarter last year. Despite this, CNA has shown resilience in previous quarters, having exceeded expectations with a positive surprise of 12.61% in the prior quarter.
CNA’s revenue for the quarter was approximately $3.63 billion, surpassing the estimated $2.68 billion. This achievement is consistent with the company’s track record of outperforming consensus revenue estimates, as it has done in the past four quarters.
The company’s net income for the first quarter of 2025 was $274 million, or $1.01 per share, down from $338 million, or $1.24 per share, in the previous year. Core income also saw a decline, with $281 million, or $1.03 per share, compared to $355 million, or $1.30 per share, in the same quarter last year. The Property & Casualty segments recorded a core income of $311 million, reflecting a $61 million decline due to lower underwriting results, although this was partially offset by increased net investment income.
CNA’s financial metrics provide insight into its market valuation and financial health. The company’s price-to-earnings (P/E) ratio is approximately 14.66, indicating how the market values its earnings. The price-to-sales ratio stands at about 0.91, suggesting that investors are paying less than a dollar for each dollar of sales. The enterprise value to sales ratio is around 1.08, reflecting the company’s total valuation relative to its sales. Additionally, the enterprise value to operating cash flow ratio is approximately 5.75, providing insight into the company’s cash flow generation relative to its valuation. With an earnings yield of 6.82%, CNA offers a return on investment from its earnings. The debt-to-equity ratio is 0.29, indicating a relatively low level of debt compared to equity. However, the current ratio is 0.41, which may suggest potential liquidity concerns as it is below the standard threshold of 1.
