As Genworth shares continue to collapse, earnings estimates may be "cut in half," even before the company reports its earnings on July 29, John Eade of Argus Research Company told CNBC in an interview.
Genworth's "losses are going to be tripling the third quarter" and institutional support for the company is wavering, Eade said.
But, he added, "It is a volatile business for this company... their balance sheet isn't terrible, not an onerous amount of debt, we think they are going to survive."
On Thursday, Genworth announced preliminary results for the second quarter and said that it expects to report an estimated net loss of $92 to $112 million, or $0.19 to $0.23 per diluted share, according to a company press release. The release adds that these numbers reflect a reserve strengthening of approximately $300 million in its U.S. mortgage insurance business.
The financial company operates in three business segments including retirement and protection, international, and U.S. mortgage insurance, which Eade said, is Genworth's "biggest problem area."
Eade added that while the mortgage insurance area is hurting, the company's investment portfolio is still generating gains.
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John Eade does not own any shares in the companies mentioned above.