MET MetLife Inc

In its concerted effort to enhance value to its shareholders, the board of directors of  StanCorp Financial Group Inc. (SFG) authorized another 3 million shares for its current share repurchase program. The new share buyback authorization will expire on December 31, 2012.

StanCorp had spent $38.7 million in the first quarter of 2010 to buy back 0.9 million shares at an average price of $45.45. The company had 1.5 million shares remaining as at March 31, 2011.

StanCorp also has strong liquidity to support the share buyback. The company ended the first quarter with cash and cash equivalents of $86.5 million and cash from operations of $70.7 million.

Previously, in February 2010, the board of directors of StanCorp had authorized an additional 3 million shares repurchase program.

StanCorp reported first-quarter 2011 earnings of 76 cents per share from continuing operations, in line with the Zacks Consensus Estimate. Earnings also fell behind the year-ago result of $1.13. The quarter experienced higher level of claims incidence in group long term disability business resulting in soft performance. 

Based on the first quarter results, StanCorp remains apprehensive of attaining net income of $4.80-$5.10 per share.

The Zacks Consensus Estimate for second-quarter 2011 is $1.10 per share. For full years 2011 and 2012, the Zacks Consensus Estimates are, respectively, $4.33 per share and $5.25 per share.

The quantitative Zacks #4 Rank (short-term Sell rating) for StanCorp indicates downward pressure on the stock over the near term.

Headquartered in Portland, Oregon, StanCorp Financial Group is one of the largest providers of employee benefits products and services in the U.S. The company operates across the country, with a dominant position in western U.S. It competes with Unum Group (UNM), MetLife, Inc. (MET) and Principal Financial Group Inc. (PFG).

 
METLIFE INC (MET): Free Stock Analysis Report
 
PRINCIPAL FINL (PFG): Free Stock Analysis Report
 
STANCORP FNL CP (SFG): Free Stock Analysis Report
 
UNUM GROUP (UNM): Free Stock Analysis Report
 
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