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.
Globe Life (GL) Up 11.1% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for Globe Life (GL - Free Report) . Shares have added about 11.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Globe Life due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Globe Life Q2 Earnings Beat on Solid Underwriting Income
Globe Life Inc.’s second-quarter 2024 net operating income of $2.97 per share beat the Zacks Consensus Estimate by 2.4%. The bottom line improved 14% year over year, primarily driven by higher excess investment income and insurance underwriting income.
The second-quarter results benefited on the back of higher Life and Health underwriting income, growth in insurance premiums and improved net investment income, partly offset by an elevated expense level.
Behind the Headlines
Globe Life reported total premium revenues of $1.2 billion, up 5% year over year. This upside was primarily driven by higher premiums from Life and Health insurance.
Net investment income increased 9% year over year to $285.6 million. The company reported operating revenues of $1.4 billion, up 5.9% from the year-ago quarter. The improvement was driven by growth in Life and Health insurance premiums and higher net investment income. The top line matched the Zacks Consensus Estimate.
Excess investment income, a measure of profitability, increased 36% year over year to $42.7 million. Total insurance underwriting income increased 8% year over year to $340.4 million. The increase was due to higher Life and Health underwriting income.
Administrative expenses were up 9% year over year to $82.2 million. Total benefits and expenses surged 89% year over year to $1.11 billion, primarily due to higher total policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes and non-deferred acquisition costs, as well as other operating expenses and interest expenses.
Segmental Results
Premium revenues at Life increased 4% year over year to $815.4 million, driven by higher premiums written by distribution channels like American Income and Liberty National. American Income grew 7% and Liberty National gained 6%.
Net sales of $153.5 million increased 10% year over year. Underwriting margins increased 8% year over year to $320.3 million.
Health insurance premium revenues rose 7% year over year to $351.6 million, primarily driven by higher premiums from United American, Family Heritage, Liberty National, American Income and Direct to Consumer. Net health sales increased 17% year over year to $57.7 million. Underwriting margins increased 9% year over year to $100.4 million.
Financial Update
Shareholders’ equity, excluding accumulated other comprehensive income (AOCI), as of Jun 30, 2024, increased 7.1% year over year to $7.41 billion. As of Jun 30, 2024, Globe Life reported book value per share, excluding AOCI, of $82.38, up 14.3% year over year.
Operating return on equity, excluding AOCI, was 14.5% in the reported quarter, which contracted 10 basis points year over year.
Share Repurchase
Globe Life repurchased 3.8 million shares worth $314 million in the reported quarter.
2024 View
GL projects net operating income in the range of $11.80-$12.10 per share for the year ending Dec 31, 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, Globe Life has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Globe Life has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Globe Life is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Virtu Financial (VIRT - Free Report) , a stock from the same industry, has gained 7.4%. The company reported its results for the quarter ended June 2024 more than a month ago.
Virtu Financial reported revenues of $385.08 million in the last reported quarter, representing a year-over-year change of +38.2%. EPS of $0.83 for the same period compares with $0.37 a year ago.
For the current quarter, Virtu Financial is expected to post earnings of $0.64 per share, indicating a change of +42.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.6% over the last 30 days.
Virtu Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Globe Life (GL) Up 11.1% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Globe Life (GL - Free Report) . Shares have added about 11.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Globe Life due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Globe Life Q2 Earnings Beat on Solid Underwriting Income
Globe Life Inc.’s second-quarter 2024 net operating income of $2.97 per share beat the Zacks Consensus Estimate by 2.4%. The bottom line improved 14% year over year, primarily driven by higher excess investment income and insurance underwriting income.
The second-quarter results benefited on the back of higher Life and Health underwriting income, growth in insurance premiums and improved net investment income, partly offset by an elevated expense level.
Behind the Headlines
Globe Life reported total premium revenues of $1.2 billion, up 5% year over year. This upside was primarily driven by higher premiums from Life and Health insurance.
Net investment income increased 9% year over year to $285.6 million.
The company reported operating revenues of $1.4 billion, up 5.9% from the year-ago quarter. The improvement was driven by growth in Life and Health insurance premiums and higher net investment income. The top line matched the Zacks Consensus Estimate.
Excess investment income, a measure of profitability, increased 36% year over year to $42.7 million. Total insurance underwriting income increased 8% year over year to $340.4 million. The increase was due to higher Life and Health underwriting income.
Administrative expenses were up 9% year over year to $82.2 million. Total benefits and expenses surged 89% year over year to $1.11 billion, primarily due to higher total policyholder benefits, amortization of deferred acquisition costs, commissions, premium taxes and non-deferred acquisition costs, as well as other operating expenses and interest expenses.
Segmental Results
Premium revenues at Life increased 4% year over year to $815.4 million, driven by higher premiums written by distribution channels like American Income and Liberty National. American Income grew 7% and Liberty National gained 6%.
Net sales of $153.5 million increased 10% year over year. Underwriting margins increased 8% year over year to $320.3 million.
Health insurance premium revenues rose 7% year over year to $351.6 million, primarily driven by higher premiums from United American, Family Heritage, Liberty National, American Income and Direct to Consumer. Net health sales increased 17% year over year to $57.7 million. Underwriting margins increased 9% year over year to $100.4 million.
Financial Update
Shareholders’ equity, excluding accumulated other comprehensive income (AOCI), as of Jun 30, 2024, increased 7.1% year over year to $7.41 billion.
As of Jun 30, 2024, Globe Life reported book value per share, excluding AOCI, of $82.38, up 14.3% year over year.
Operating return on equity, excluding AOCI, was 14.5% in the reported quarter, which contracted 10 basis points year over year.
Share Repurchase
Globe Life repurchased 3.8 million shares worth $314 million in the reported quarter.
2024 View
GL projects net operating income in the range of $11.80-$12.10 per share for the year ending Dec 31, 2024.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, Globe Life has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Globe Life has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Globe Life is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Virtu Financial (VIRT - Free Report) , a stock from the same industry, has gained 7.4%. The company reported its results for the quarter ended June 2024 more than a month ago.
Virtu Financial reported revenues of $385.08 million in the last reported quarter, representing a year-over-year change of +38.2%. EPS of $0.83 for the same period compares with $0.37 a year ago.
For the current quarter, Virtu Financial is expected to post earnings of $0.64 per share, indicating a change of +42.2% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.6% over the last 30 days.
Virtu Financial has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.