We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can MetLife (MET) Tackle Lower Premiums in Q2 Earnings?
Read MoreHide Full Article
MetLife, Inc. (MET - Free Report) is slated to release second-quarter 2024 results on Jul 31, after the closing bell.
Estimates
The Zacks Consensus Estimate for MET’s second-quarter earnings per share is pegged at $2.13, which indicates an improvement of 9.8% from the year-ago quarter’s reported figure. The estimate was revised downward by one analyst in the past month against five in the opposite direction, resulting in a decrease of 4 cents from $2.17 per share.
The consensus mark for revenues is $18.2 billion, indicating a 2.4% fall from the prior-year quarter’s tally.
Image Source: Zacks Investment Research
Earnings Surprise History
MetLife’s bottom line beat estimates in one of the trailing four quarters, matched the mark once and missed the same on the remaining two occasions, the average surprise being 0.71%. This is depicted in the chart below:
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 odds of an earnings beat. However, that’s not the case here, as you see below.
Earnings ESP: MetLife has an Earnings ESP of -0.74%. This is because the Most Accurate Estimate currently is $2.11 per share, lower than the Zacks Consensus Estimate of $2.13. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: MET currently has a Zacks Rank of 3.
Now, let’s see how things have shaped up before the second-quarter earnings announcement.
Factors to Note
MetLife's revenues are expected to have benefited from an increase in net investment income, which in turn, is likely to have been due to higher variable investment income as a result of private equity gains. The Zacks Consensus Estimate for net investment income is $5.1 billion, marking a 1.5% increase from the prior-year quarter’s reported number.
However, the decline in overall premiums is likely to have acted as a partial offset to the top-line growth of MET. The consensus mark for total premiums is $11.1 billion, which indicates a 4.9% decline from the year-ago quarter’s reported figure.
Sound contributions from the Group Benefits, Asia and Latin America segments are expected to drive MET's quarterly results. The Group Benefits business is likely to have been aided by higher sales across its core and voluntary products. The Zacks Consensus Estimate for this segment's adjusted earnings is $413.9 million, indicating 11.3% growth from the prior-year quarter’s reported number.
The RIS segment's performance is likely to have been hurt by a decline in recurring interest margins and less favorable underwriting margins in the second quarter. Nevertheless, improved variable investment income, solid sales of structured settlement products and expansion in U.K. longevity reinsurance are likely to have benefited the unit’s performance. The consensus mark for adjusted revenues of the RIS segment is pegged at $3.8 billion, which implies a 19.5% fall from the year-ago quarter’s tally.
Meanwhile, the Asia unit is expected to have been aided by rising variable investment income, favorable underwriting margins and favorable tax benefits in the prior quarter. The consensus estimate for adjusted revenues in the Asia segment is $2.9 billion, indicating a 5.6% rise from the prior-year quarter’s reported figure.
The Latin America segment is expected to have benefited on the back of expanding volumes and favorable underwriting margins. The Zacks Consensus Estimate for this segment’s adjusted revenues is $1.9 billion, indicating 7.5% growth year over year. The consensus mark for the unit’s adjusted earnings indicates a 1.9% improvement from the prior-year quarter’s reported figure.
Additionally, numerous cost-cutting initiatives are likely to have provided some respite to MetLife’s margins.
Stocks to Consider
Here are some companies from the insurance space, which according to our model, have the right combination of elements to beat on earnings this time around:
The Zacks Consensus Estimate for KMPR’s second-quarter 2024 earnings is pegged at $1.19 per share. A loss of 26 cents per share was incurred in the prior-year quarter.
Kemper’s earnings beat estimates in two of the trailing four quarters, matched the mark once and missed the same in the remaining one occasion, the average surprise being 9.99%.
Palomar Holdings, Inc. (PLMR - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank of 2, at present. The Zacks Consensus Estimate for PLMR’s second-quarter earnings is pegged at $1.12 per share, which implies a 30.2% rise from the year-ago quarter’s reported figure.
Palomar’s earnings beat estimates in each of the trailing four quarters, the average surprise being 15.10%.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +36.50% and a Zacks Rank of 3, at present. The Zacks Consensus Estimate for ALL’s second-quarter earnings is pegged at 33 cents per share. A loss of $4.42 per share was incurred in the prior-year quarter.
Allstate’s earnings beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 41.88%.
Image: Bigstock
Can MetLife (MET) Tackle Lower Premiums in Q2 Earnings?
MetLife, Inc. (MET - Free Report) is slated to release second-quarter 2024 results on Jul 31, after the closing bell.
Estimates
The Zacks Consensus Estimate for MET’s second-quarter earnings per share is pegged at $2.13, which indicates an improvement of 9.8% from the year-ago quarter’s reported figure. The estimate was revised downward by one analyst in the past month against five in the opposite direction, resulting in a decrease of 4 cents from $2.17 per share.
The consensus mark for revenues is $18.2 billion, indicating a 2.4% fall from the prior-year quarter’s tally.
Image Source: Zacks Investment Research
Earnings Surprise History
MetLife’s bottom line beat estimates in one of the trailing four quarters, matched the mark once and missed the same on the remaining two occasions, the average surprise being 0.71%. This is depicted in the chart below:
MetLife, Inc. Price and EPS Surprise
MetLife, Inc. price-eps-surprise | MetLife, Inc. Quote
What Our Quantitative Model Predicts
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 odds of an earnings beat. However, that’s not the case here, as you see below.
Earnings ESP: MetLife has an Earnings ESP of -0.74%. This is because the Most Accurate Estimate currently is $2.11 per share, lower than the Zacks Consensus Estimate of $2.13. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: MET currently has a Zacks Rank of 3.
Now, let’s see how things have shaped up before the second-quarter earnings announcement.
Factors to Note
MetLife's revenues are expected to have benefited from an increase in net investment income, which in turn, is likely to have been due to higher variable investment income as a result of private equity gains. The Zacks Consensus Estimate for net investment income is $5.1 billion, marking a 1.5% increase from the prior-year quarter’s reported number.
However, the decline in overall premiums is likely to have acted as a partial offset to the top-line growth of MET. The consensus mark for total premiums is $11.1 billion, which indicates a 4.9% decline from the year-ago quarter’s reported figure.
Sound contributions from the Group Benefits, Asia and Latin America segments are expected to drive MET's quarterly results. The Group Benefits business is likely to have been aided by higher sales across its core and voluntary products. The Zacks Consensus Estimate for this segment's adjusted earnings is $413.9 million, indicating 11.3% growth from the prior-year quarter’s reported number.
The RIS segment's performance is likely to have been hurt by a decline in recurring interest margins and less favorable underwriting margins in the second quarter. Nevertheless, improved variable investment income, solid sales of structured settlement products and expansion in U.K. longevity reinsurance are likely to have benefited the unit’s performance. The consensus mark for adjusted revenues of the RIS segment is pegged at $3.8 billion, which implies a 19.5% fall from the year-ago quarter’s tally.
Meanwhile, the Asia unit is expected to have been aided by rising variable investment income, favorable underwriting margins and favorable tax benefits in the prior quarter. The consensus estimate for adjusted revenues in the Asia segment is $2.9 billion, indicating a 5.6% rise from the prior-year quarter’s reported figure.
The Latin America segment is expected to have benefited on the back of expanding volumes and favorable underwriting margins. The Zacks Consensus Estimate for this segment’s adjusted revenues is $1.9 billion, indicating 7.5% growth year over year. The consensus mark for the unit’s adjusted earnings indicates a 1.9% improvement from the prior-year quarter’s reported figure.
Additionally, numerous cost-cutting initiatives are likely to have provided some respite to MetLife’s margins.
Stocks to Consider
Here are some companies from the insurance space, which according to our model, have the right combination of elements to beat on earnings this time around:
Kemper Corporation (KMPR - Free Report) currently has an Earnings ESP of +14.77% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for KMPR’s second-quarter 2024 earnings is pegged at $1.19 per share. A loss of 26 cents per share was incurred in the prior-year quarter.
Kemper’s earnings beat estimates in two of the trailing four quarters, matched the mark once and missed the same in the remaining one occasion, the average surprise being 9.99%.
Palomar Holdings, Inc. (PLMR - Free Report) has an Earnings ESP of +1.34% and a Zacks Rank of 2, at present. The Zacks Consensus Estimate for PLMR’s second-quarter earnings is pegged at $1.12 per share, which implies a 30.2% rise from the year-ago quarter’s reported figure.
Palomar’s earnings beat estimates in each of the trailing four quarters, the average surprise being 15.10%.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +36.50% and a Zacks Rank of 3, at present. The Zacks Consensus Estimate for ALL’s second-quarter earnings is pegged at 33 cents per share. A loss of $4.42 per share was incurred in the prior-year quarter.
Allstate’s earnings beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 41.88%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.