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Yahoo
01-08-2025
- Business
- Yahoo
Why Unum Stock Tumbled by 12% Today
Key Points It missed by a wide margin on second-quarter profitability. Compounding that, it cut its bottom-line guidance again for full-year 2025. 10 stocks we like better than Unum Group › Insurance conglomerate Unum Group (NYSE: UNM) wasn't the safest bet on the stock market Wednesday. The company's share price cratered by more than 12% on the back of a poorly received earnings report. That decline was especially pronounced on a day when the S&P 500 index only dipped by 0.1%. Quite the whiff on the bottom line In its second quarter, Unum took in revenue of $3.36 billion, which bettered the $3.23 billion of the same period of 2024. This was on the back of a nearly 5% year-over-year rise in premium income to $2.75 billion, and a 3% increase in net investment income to almost $561 million. The top-line figure was only slightly higher than the consensus analyst estimate of $3.33 billion. However, Unum's after-tax adjusted operating income fell, sliding by 12% to slightly more than $361 million, or $2.07 per share. Prognosticators tracking the stock were expecting much better, as they were collectively modeling $2.22 per share. Management attempted to put a positive spin on the quarter, quoting CEO Richard McKenney as saying that "Core fundamentals remain solid and we continued to deliver strong premium growth in our capital-efficient, high-return businesses." Yet another chop A larger factor in the Unum sell-off was the company's full-year profitability guidance, which was reduced for the second quarter in a row. Over the entirety of 2025, Unum is now modeling an after-tax adjusted operating income of $8.50 per share, which would be less than 1% higher than the 2024 result. Previously, Unum had forecast growth of at least 6% in the line item. Should you buy stock in Unum Group right now? Before you buy stock in Unum Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Unum Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $630,291!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,075,791!* Now, it's worth noting Stock Advisor's total average return is 1,039% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Unum Stock Tumbled by 12% Today was originally published by The Motley Fool
Yahoo
31-07-2025
- Business
- Yahoo
Unum Group (UNM) Loses 12% on Disappointing Q2
We recently published . Unum Group (NYSE:UNM) is one of the best-performing stocks on Wednesday. Unum Group declined by 12.18 percent on Wednesday to finish at $71.11 apiece following a disappointing earnings performance in the second quarter of the year. In its financial statement, Unum Group (NYSE:UNM) said net income dropped by 13.8 percent to $335.6 million from $389.5 million in the same period last year. Total revenues, on the other hand, grew by 3.9 percent to $3.36 billion from $3.23 billion year-on-year. 'During the quarter, we made meaningful progress against our strategic priorities, despite earnings results that did not meet our expectations,' Unum Group (NYSE:UNM) President and CEO Richard McKenney said. 'Core fundamentals remain solid, and we continued to deliver strong premium growth in our capital-efficient, high-return businesses. We continue to execute on our risk management and capital deployment priorities, returning substantial capital to shareholders through dividends and share repurchases while closing our long-term care reinsurance transaction,' he added. By August 15, shareholders of Unum Group (NYSE:UNM) as of July 25 will receive a $0.46 quarterly dividend per common share held. While we acknowledge the potential of UNM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
