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Why Is MetLife (MET) Down 1.7% Since Last Earnings Report?
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It has been about a month since the last earnings report for MetLife (MET - Free Report) . Shares have lost about 1.7% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is MetLife due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
MetLife reported fourth-quarter 2021 adjusted operating earnings of $2.17 per share, which surpassed the Zacks Consensus Estimate by 52.8%. The bottom line also improved 6.9% over year.
Results were aided by solid contributions from its MetLife Holdings, Latin America and Asia businesses.
Behind the Headlines
MetLife’s adjusted operating revenues of $20 billion dipped 1.8% year over year However, the top line beat the Zacks Consensus Estimate by 19.8%.
Adjusted premiums, fees and other revenues excluding pension risk transfer (PRT) declined 1% year over year to $11.5 billion in the quarter under review.
Adjusted net investment income of $5.2 billion rose 7% year over year, courtesy of growth in variable investment income resulting from improved private equity returns.
Total expenses dipped 2.4% year over year to $18.7 billion in the fourth quarter owing to lower interest credited to policyholder account balances, policyholder dividends, amortization of DAC and VOBA, and lower other expenses.
Adjusted expense ratio excluding total notable items related to other expenses and PRT contracted 20 basis points (bps) year over year to 20.4%. Adjusted book value per share of $77.12 dipped 2% year over year.
Adjusted return on equity excluding AOCI other than FCTA expanded 10 bps year over year to 15.3% in the quarter under review.
Segmental Performances
U.S.
Adjusted earnings in this segment tumbled 37% year over year to $640 million due to unfavorable underwriting. However, the same was partly offset by a better variable investment income.
Adjusted premiums, fees and other revenues amounted to $10.1 billion at the segment, which declined 5% year over year due to higher pension risk transfer sales.
Asia
Adjusted earnings of $586 million increased 19% on a year-over-year basis.
On constant currency (cc) basis, adjusted earnings increased 21% year over year, courtesy of an uptick in variable investment income and growing volumes along with favorable expense margins.
Adjusted premiums, fees & other revenues were down 6% year over year to $2 billion in the quarter under review. The same was flat on constant currency basis.
Latin America
Adjusted earnings in the segment totaled $125 million, comparing favorably with the year-ago quarter’s figure of $14 million. Adjusted earnings at cc of $125 million also surged from the year-ago quarter’s value of $12 million. This was driven by lower COVID-19 related claims.
Adjusted premiums, fees & other revenues of $962 million rose 10% year over year in the segment.
EMEA
Adjusted earnings from EMEA tumbled 48% year over year to $42 million. At cc, adjusted earnings decreased 45% year over year due to unfavorable underwriting associated with COVID-19 along with higher expenses and the exclusion of divested businesses in the current year.
Adjusted premiums, fees & other revenues of $621 million declined 12% year over year.
MetLife Holdings
Adjusted earnings from MetLife Holdings amounted to $482 million, which increased 13% from the prior-year quarter’s level. The upside came on the back of an improved variable investment income.
Adjusted premiums, fees & other revenues of $1.2 billion decreased 5% year over year in the third quarter.
Corporate & Other
Adjusted loss of $37 million decreased from the year-ago quarter’s loss of $198 million.
Financial Update
Total shareholders’ equity as of Dec 31, 2021 was $67.4 billion, down 9.5% from the year-ago period’s reported figure.
Share Repurchase Update
MET bought back shares worth $1.2 billion in the quarter under review.
2021 Update
Total revenues for the year rose 4.8% year over year.
Adjusted earnings, excluding total notable items, for the full year came in at $9.07, up 42% year over year. Adjusted premiums, fees and other revenues excluding pension risk transfer (PRT) increased 2% year over year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted 5.66% due to these changes.
VGM Scores
Currently, MetLife has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, MetLife has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is MetLife (MET) Down 1.7% Since Last Earnings Report?
It has been about a month since the last earnings report for MetLife (MET - Free Report) . Shares have lost about 1.7% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is MetLife due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
MetLife's Q4 Earnings & Revenues Surpass Estimates
MetLife reported fourth-quarter 2021 adjusted operating earnings of $2.17 per share, which surpassed the Zacks Consensus Estimate by 52.8%. The bottom line also improved 6.9% over year.
Results were aided by solid contributions from its MetLife Holdings, Latin America and Asia businesses.
Behind the Headlines
MetLife’s adjusted operating revenues of $20 billion dipped 1.8% year over year However, the top line beat the Zacks Consensus Estimate by 19.8%.
Adjusted premiums, fees and other revenues excluding pension risk transfer (PRT) declined 1% year over year to $11.5 billion in the quarter under review.
Adjusted net investment income of $5.2 billion rose 7% year over year, courtesy of growth in variable investment income resulting from improved private equity returns.
Total expenses dipped 2.4% year over year to $18.7 billion in the fourth quarter owing to lower interest credited to policyholder account balances, policyholder dividends, amortization of DAC and VOBA, and lower other expenses.
Adjusted expense ratio excluding total notable items related to other expenses and PRT contracted 20 basis points (bps) year over year to 20.4%.
Adjusted book value per share of $77.12 dipped 2% year over year.
Adjusted return on equity excluding AOCI other than FCTA expanded 10 bps year over year to 15.3% in the quarter under review.
Segmental Performances
U.S.
Adjusted earnings in this segment tumbled 37% year over year to $640 million due to unfavorable underwriting. However, the same was partly offset by a better variable investment income.
Adjusted premiums, fees and other revenues amounted to $10.1 billion at the segment, which declined 5% year over year due to higher pension risk transfer sales.
Asia
Adjusted earnings of $586 million increased 19% on a year-over-year basis.
On constant currency (cc) basis, adjusted earnings increased 21% year over year, courtesy of an uptick in variable investment income and growing volumes along with favorable expense margins.
Adjusted premiums, fees & other revenues were down 6% year over year to $2 billion in the quarter under review. The same was flat on constant currency basis.
Latin America
Adjusted earnings in the segment totaled $125 million, comparing favorably with the year-ago quarter’s figure of $14 million. Adjusted earnings at cc of $125 million also surged from the year-ago quarter’s value of $12 million. This was driven by lower COVID-19 related claims.
Adjusted premiums, fees & other revenues of $962 million rose 10% year over year in the segment.
EMEA
Adjusted earnings from EMEA tumbled 48% year over year to $42 million. At cc, adjusted earnings decreased 45% year over year due to unfavorable underwriting associated with COVID-19 along with higher expenses and the exclusion of divested businesses in the current year.
Adjusted premiums, fees & other revenues of $621 million declined 12% year over year.
MetLife Holdings
Adjusted earnings from MetLife Holdings amounted to $482 million, which increased 13% from the prior-year quarter’s level. The upside came on the back of an improved variable investment income.
Adjusted premiums, fees & other revenues of $1.2 billion decreased 5% year over year in the third quarter.
Corporate & Other
Adjusted loss of $37 million decreased from the year-ago quarter’s loss of $198 million.
Financial Update
Total shareholders’ equity as of Dec 31, 2021 was $67.4 billion, down 9.5% from the year-ago period’s reported figure.
Share Repurchase Update
MET bought back shares worth $1.2 billion in the quarter under review.
2021 Update
Total revenues for the year rose 4.8% year over year.
Adjusted earnings, excluding total notable items, for the full year came in at $9.07, up 42% year over year. Adjusted premiums, fees and other revenues excluding pension risk transfer (PRT) increased 2% year over year.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted 5.66% due to these changes.
VGM Scores
Currently, MetLife has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, MetLife has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.