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MetLife (MET) to Post Q3 Earnings: Here's What to Expect

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MetLife, Inc. (MET - Free Report) is set to report its third-quarter 2022 results on Nov 2, after the closing bell.

In the last reported quarter, the leading insurance-based global financial services company reported adjusted operating earnings per share of $2, beating the Zacks Consensus Estimate by 29% due to higher premiums, fees and other revenues, solid contributions from the Latin America segment and reduced expenses. However, the upside was partly offset by a lower net investment income.

Let’s see how things have shaped up prior to the third-quarter earnings announcement.

The Trend in Estimate Revision

The Zacks Consensus Estimate for third-quarter earnings per share of $1.18 has witnessed no movement in the past week. The estimated figure suggests a decrease of 50.6% from the prior-year reported number. However, the consensus estimate for third-quarter revenues of $19.9 billion indicates a 16.4% rise from the year-ago reported figure.

MetLife’s earnings beat the consensus estimate in all the prior four quarters, with the average being 38.4%. This is depicted in the graph below:

MetLife, Inc. Price and EPS Surprise

MetLife, Inc. Price and EPS Surprise

MetLife, Inc. price-eps-surprise | MetLife, Inc. Quote

Factors to Note

Increased premiums are likely to have benefited MetLife’s third-quarter revenues. The Zacks Consensus Estimate for premiums is pegged at $10,941 million, which suggests growth of 15.7% from the prior-year quarter.

The consensus mark for adjusted earnings in Latin America indicates a massive jump of 282.8% from the year-ago period’s actuals. Similarly, the Zacks Consensus Estimate for adjusted earnings in Group Benefits indicates a 179.3% rise from the prior-year period.

However, the consensus mark for net investment income indicates a 25.8% year-over-year decline from the year-ago period. Also, the Zacks Consensus Estimate for MET’s U.S. business’ adjusted earnings is pegged at $549 million, which suggests a decline of 38.7% from the prior-year quarter’s reading. This is likely to have led to a year-over-year decline in profits.

Further, the consensus mark for adjusted earnings in Retirement Income Solutions indicates a 69.5% decline from the third quarter of 2021. Rising costs and expenses are likely to have affected the company’s profit levels in the to-be-reported quarter. This makes an earnings beat for the September quarter of 2022 uncertain.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for MetLife this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00%. The Most Accurate Estimate is currently pegged at $1.18 per share, in line with the Zacks Consensus Estimate.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: MetLife currently carries a Zacks Rank #3.

Stocks to Consider

While an earnings beat looks uncertain for MetLife, here are some companies in the broader Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

EverQuote, Inc. (EVER - Free Report) has an Earnings ESP of +4.88% and is a Zacks #2 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for EverQuote’s bottom line remained stable over the past week. EVER beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 24.6%.

Trupanion, Inc. (TRUP - Free Report) has an Earnings ESP of +3.51% and a Zacks Rank of 3.

The Zacks Consensus Estimate for Trupanion’s top line for the to-be-reported quarter indicates 27.3% year-over-year growth. TRUP beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 44.79%.

Trean Insurance Group, Inc. has an Earnings ESP of +11.11% and a Zacks Rank of 3.

The Zacks Consensus Estimate for Trean Insurance’s bottom line for the to-be-reported quarter is pegged at 9 cents per share, which witnessed one upward revision in the past 30 days against none in the opposite direction. The consensus mark for TIG’s revenues is pegged at $68.4 million, indicating 20.1% year-over-year growth.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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