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.
MetLife (MET): Will it Disappoint Again in Q2 Earnings?
Read MoreHide Full Article
MetLife Inc. (MET - Free Report) is set to report second-quarter 2016 financial results on Aug 3, after the closing bell.
Last quarter, it missed the estimate by 5.76% and the average miss for the trailing four quarters is 16.76%.
How will Metlife's earnings fare in this quarter? Let’s find out.
Factors Influencing the Past Quarter
Foreign exchange, equity markets and interest rates hurt results in the previous quarter and are likely to remain culprits this time too.
Moreover, MetLife's earnings will likely feel the adverse effect of deteriorating net investment income and weakened yields are expected to weigh on revenues. Variable investment income is also expected to decline due to weak hedge fund performance.
We expect a decline in operating earnings from Asia as the company is intentionally reducing sales of yen-denominated products by withdrawing single premium Accident and Health and Whole Life offerings in Japan.
Metlife's property and casualty segment might see improved results from auto insurance as a result of rate increases.
Nevertheless, global expansion through acquisitions and strategic alliances along with a diversified portfolio and prudent underwriting should support earnings.
Earnings Whispers
Our proven model does not conclusively show that MetLife is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: MetLife has an Earning ESP of -1.47%. This is because the Most Accurate estimate stands at $1.34 while the Zacks Consensus Estimate is pegged at $1.36.
Zacks Rank: MetLife carries a Zacks Rank #4 (Sell). We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Here are some companies you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
Prudential Financial, Inc. (PRU - Free Report) has an Earnings ESP of +0.40% and carries a Zacks Rank #3. The company is slated to report second-quarter earnings results on Aug 3.
Manulife Financial Corporation (ALL - Free Report) has an Earnings ESP of +2.94% and carries a Zacks Rank #3. The company is expected to report second-quarter earnings results on Aug 4.
Sun Life Financial Inc. (SLF - Free Report) has an Earnings ESP of +1.47% and carries a Zacks Rank #2. The company is expected to report second-quarter earnings results on Aug 10.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
MetLife (MET): Will it Disappoint Again in Q2 Earnings?
MetLife Inc. (MET - Free Report) is set to report second-quarter 2016 financial results on Aug 3, after the closing bell.
Last quarter, it missed the estimate by 5.76% and the average miss for the trailing four quarters is 16.76%.
How will Metlife's earnings fare in this quarter? Let’s find out.
Factors Influencing the Past Quarter
Foreign exchange, equity markets and interest rates hurt results in the previous quarter and are likely to remain culprits this time too.
Moreover, MetLife's earnings will likely feel the adverse effect of deteriorating net investment income and weakened yields are expected to weigh on revenues. Variable investment income is also expected to decline due to weak hedge fund performance.
We expect a decline in operating earnings from Asia as the company is intentionally reducing sales of yen-denominated products by withdrawing single premium Accident and Health and Whole Life offerings in Japan.
Metlife's property and casualty segment might see improved results from auto insurance as a result of rate increases.
Nevertheless, global expansion through acquisitions and strategic alliances along with a diversified portfolio and prudent underwriting should support earnings.
Earnings Whispers
Our proven model does not conclusively show that MetLife is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.
Zacks ESP: MetLife has an Earning ESP of -1.47%. This is because the Most Accurate estimate stands at $1.34 while the Zacks Consensus Estimate is pegged at $1.36.
Zacks Rank: MetLife carries a Zacks Rank #4 (Sell). We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
METLIFE INC Price and EPS Surprise
METLIFE INC Price and EPS Surprise | METLIFE INC Quote
Stocks That Warrant a Look
Here are some companies you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
Prudential Financial, Inc. (PRU - Free Report) has an Earnings ESP of +0.40% and carries a Zacks Rank #3. The company is slated to report second-quarter earnings results on Aug 3.
Manulife Financial Corporation (ALL - Free Report) has an Earnings ESP of +2.94% and carries a Zacks Rank #3. The company is expected to report second-quarter earnings results on Aug 4.
Sun Life Financial Inc. (SLF - Free Report) has an Earnings ESP of +1.47% and carries a Zacks Rank #2. The company is expected to report second-quarter earnings results on Aug 10.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>