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.
Brighthouse Financial (BHF) Up 5.2% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for Brighthouse Financial (BHF - Free Report) . Shares have added about 5.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Brighthouse Financial 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.
Brighthouse Q2 Earnings and Revenues Top, Rise Y/Y
Brighthouse Financial reported second-quarter 2024 adjusted net income of $5.57 per share, which beat the Zacks Consensus Estimate by 27.8%. The bottom line improved 34.7% year over year.
The results reflected strong sales, including record sales of Shield Level Annuities as well as the effect of increased share buybacks.
Behind the Headlines
Total operating revenues of $2.2 billion increased 2.6% year over year, driven by higher net investment income and other income. The top line beat the consensus mark by 0.9%.
Premiums of $181 million decreased 14.2% year over year.
Adjusted net investment income was $1.3 billion in the quarter under review, up 8% year over year, primarily driven by alternative investment income, asset growth and higher interest rates. The adjusted investment income yield was 4.39%.
Total expenses were $1.4 million, up nearly threefold year over year, attributable to lower unfavorable change in market risk benefits. Corporate expenses, pretax, were $200 million, down 9.5% year over year.
Quarterly Segmental Update
Annuities recorded an adjusted operating income of $332 million, up 14.1% year over year. Annuity sales increased 2.6% to $2.4 billion, attributable to strong Shield Level Annuity sales and higher fixed indexed annuity sales from the company's recently launched SecureKey product.
Life’s adjusted operating income was $42 million, up nearly threefold year over year, on higher underwriting margin and lower expenses. Life insurance sales increased 12% to $28 million.
Adjusted operating loss at Run-off was $30 million, wider than the year-ago loss of $16 million, reflecting lower underwriting margin, partially offset by lower expenses.
Corporate & Other recorded adjusted operating income of $2 million against the year-ago loss of $19 million, reflecting higher net investment income and a higher tax benefit.
Financial Update
Cash and cash equivalents were $4.4 billion, up 18.8% year over year.
Shareholders’ equity of $4.2 billion at the end of second-quarter 2024 decreased 15.4% year over year.
Book value per share, excluding accumulated other comprehensive income, was $128.36 as of Jun 30, 2024, down 6.8% year over year.
Statutory combined total adjusted capital was $5.4 billion as of Jun 30, 2024, down 28.9% year over year.
As of Jun 30, 2024, the estimated combined risk-based capital ratio was 380.
Share Buyback Program
Brighthouse bought back shares worth $64 million in the second quarter of 2024, and another $25 million through Aug 2, 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
Currently, Brighthouse Financial has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Brighthouse Financial 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
Brighthouse Financial is part of the Zacks Insurance - Life Insurance industry. Over the past month, Voya Financial (VOYA - Free Report) , a stock from the same industry, has gained 8.7%. The company reported its results for the quarter ended June 2024 more than a month ago.
Voya reported revenues of $324 million in the last reported quarter, representing a year-over-year change of -6.6%. EPS of $2.27 for the same period compares with $2.31 a year ago.
Voya is expected to post earnings of $2.18 per share for the current quarter, representing a year-over-year change of +5.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Voya. Also, the stock has a VGM Score of D.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Brighthouse Financial (BHF) Up 5.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Brighthouse Financial (BHF - Free Report) . Shares have added about 5.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Brighthouse Financial 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.
Brighthouse Q2 Earnings and Revenues Top, Rise Y/Y
Brighthouse Financial reported second-quarter 2024 adjusted net income of $5.57 per share, which beat the Zacks Consensus Estimate by 27.8%. The bottom line improved 34.7% year over year.
The results reflected strong sales, including record sales of Shield Level Annuities as well as the effect of increased share buybacks.
Behind the Headlines
Total operating revenues of $2.2 billion increased 2.6% year over year, driven by higher net investment income and other income. The top line beat the consensus mark by 0.9%.
Premiums of $181 million decreased 14.2% year over year.
Adjusted net investment income was $1.3 billion in the quarter under review, up 8% year over year, primarily driven by alternative investment income, asset growth and higher interest rates. The adjusted investment income yield was 4.39%.
Total expenses were $1.4 million, up nearly threefold year over year, attributable to lower unfavorable change in market risk benefits. Corporate expenses, pretax, were $200 million, down 9.5% year over year.
Quarterly Segmental Update
Annuities recorded an adjusted operating income of $332 million, up 14.1% year over year. Annuity sales increased 2.6% to $2.4 billion, attributable to strong Shield Level Annuity sales and higher fixed indexed annuity sales from the company's recently launched SecureKey product.
Life’s adjusted operating income was $42 million, up nearly threefold year over year, on higher underwriting margin and lower expenses. Life insurance sales increased 12% to $28 million.
Adjusted operating loss at Run-off was $30 million, wider than the year-ago loss of $16 million, reflecting lower underwriting margin, partially offset by lower expenses.
Corporate & Other recorded adjusted operating income of $2 million against the year-ago loss of $19 million, reflecting higher net investment income and a higher tax benefit.
Financial Update
Cash and cash equivalents were $4.4 billion, up 18.8% year over year.
Shareholders’ equity of $4.2 billion at the end of second-quarter 2024 decreased 15.4% year over year.
Book value per share, excluding accumulated other comprehensive income, was $128.36 as of Jun 30, 2024, down 6.8% year over year.
Statutory combined total adjusted capital was $5.4 billion as of Jun 30, 2024, down 28.9% year over year.
As of Jun 30, 2024, the estimated combined risk-based capital ratio was 380.
Share Buyback Program
Brighthouse bought back shares worth $64 million in the second quarter of 2024, and another $25 million through Aug 2, 2024.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
Currently, Brighthouse Financial has a subpar Growth Score of D, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Brighthouse Financial 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
Brighthouse Financial is part of the Zacks Insurance - Life Insurance industry. Over the past month, Voya Financial (VOYA - Free Report) , a stock from the same industry, has gained 8.7%. The company reported its results for the quarter ended June 2024 more than a month ago.
Voya reported revenues of $324 million in the last reported quarter, representing a year-over-year change of -6.6%. EPS of $2.27 for the same period compares with $2.31 a year ago.
Voya is expected to post earnings of $2.18 per share for the current quarter, representing a year-over-year change of +5.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Voya. Also, the stock has a VGM Score of D.