A month has gone by since the last earnings report for Sun Life (SLF Quick QuoteSLF - Free Report) . Shares have added about 9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Sun 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.

Sun Life Q2 Earnings Beat, Revenues Miss Estimates

Sun Life Financial delivered second-quarter 2024 underlying net income of $1.25 per share, which beat the Zacks Consensus Estimate by 5.9%. The bottom line increased 6.8% year over year. Underlying net income was $730.8 million (C$1 billion), which increased 9% year over year.

Results reflected continued solid growth in Canada and Asia. The U.S. also saw favorable experience in Group Benefits, partially offset by residual headwinds in dental.

Revenues of $6.5 billion increased 14.2% year over year but missed the Zacks Consensus Estimate by 3%.

Wealth sales & asset management gross flows of $33.8 billion (C$46.3 billion) increased 9.1% year over year. Group - Health & Protection sales of $362.5 million (C$496 million) decreased 17.7% year over year. Individual - Protection sales of $550.3 million (C$753 million) jumped 24.7% year over year.

New business contractual service margin (CSM) was $319.4 million (C$437 million), up 61.9% year over year.

Segment Results

SLF Canada’s underlying net income increased 8% year over year to $294 million (C$402 million). Canada witnessed solid results at Wealth & Asset Management and Individual - Protection.

Wealth sales & asset management gross flows of $3.6 billion ($5 billion) climbed 72% year over year. Group - Health & Protection increased year over year but Individual - Protection sales declined.

SLF U.S.’ underlying net income was $149 million, which decreased 5% year over year, reflecting soft results at Individual – Protection and Group - Health & Protection.

U.S. group sales of $243 million decreased 22%, reflecting lower Medicare and Medicaid sales in Dental due to large institutional sales in the prior year, partially offset by higher medical stop-loss sales.

SLF Asset Management reported underlying net income of $224.3 million (C$307 million), which increased 4% year over year, attributable to stable results in MFS. Asset Management exited the reported quarter with $0.8 trillion (C$1.072 trillion) of AUM, comprising $618 billion in MFS and $165.9 billion (C$227 billion) in SLC Management.

SLF Asia reported underlying net income of $130.8 million (C$179 million), which grew 19% year over year, driven by solid results at Wealth & asset management and Individual - Protection.

Individual sales of $428 million (C$586 million) jumped 30% year over year. Wealth sales & asset management gross flows of $1.5 billion ($2 billion) increased 24% year over year. New busines

New business CSM of $160.8 million (C$220 million) increased 86.4% year over year, primarily driven by sales in Hong Kong.

Financial Update

Global assets under management were $1.1 billion (C$1.465 trillion), up 7% year over year.

Sun Life Assurance’s Life Insurance Capital Adequacy Test (LICAT) ratio was 142% as of Jun 30, 2024, up 300 basis points (bps) from Jun 30, 2023, level.

The LICAT ratio for Sun Life (including cash and other liquid assets) was 150%, which expanded 20 bps year over year.

Sun Life’s return on equity was 11.7% in the second quarter of 2024, which contracted 100 bps year over year. The underlying return on equity of 18.1% expanded 40 bps year over year. The leverage ratio of 22.61% improved 70 bps from Jun 30, 2023, level.

Dividend Update

The company’s board of directors approved a quarterly dividend of 81 cents per share. The amount will be paid out on Sep 27, 2024, to shareholders of record at the close of business on Aug 28.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

Currently, Sun Life has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% 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

Sun Life has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Sun Life belongs to the Zacks Insurance - Life Insurance industry. Another stock from the same industry, Voya Financial (VOYA Quick QuoteVOYA - Free Report) , has gained 7.6% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.

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.

For the current quarter, Voya is expected to post earnings of $2.18 per share, indicating a change of +5.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.

Voya has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.