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Why Is MetLife (MET) Up 3.8% Since the Last Earnings Report?
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A month has gone by since the last earnings report for MetLife, Inc. (MET - Free Report) . Shares have added about 3.8% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? 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 Q4 Earnings Beat Estimates, Revenues Miss
MetLife, Inc.’s fourth-quarter 2016 earnings of $1.35 per share beat the Zacks Consensus Estimate by a penny and increased 1.5% year over year.
The company generated operating revenues of $17.2 billion, missing the Zacks Consensus Estimate of $17.3 billion. MetLife’s premiums, fees and other revenues slipped 0.71% year over year to $12.3 billion.
In the reported quarter, the company’s total operating expenses increased 1% year over year to $15.4 billion.
Segment Details
U.S.
Operating earnings in this segment increased 19% year over year to $516 million, led by higher contribution from the sub-segments Group Benefits & Retirement and Income Solutions. Operating premiums, fees & other revenues increased 4% to $5.8 billion.
Asia
Operating earnings were up 13% (or 8% on a constant currency basis) year over year to $354 million, driven by volume growth, favorable markets and a tax-related item in Japan. Operating premiums, fees & other revenues in Asia increased 5% (down 2% on a constant currency basis) to $2.1 billion.
Latin America
Operating earnings were $122 million, down 5% (up 5% on a constant currency basis) year over year as an outcome of a one-time tax benefit in the prior-year quarter and higher expenses in the reported quarter. Operating premiums, fees & other revenues were $913 million, down 2% (up 5% on a constant currency basis).
EMEA
Operating earnings from EMEA increased 33% (or 44% on constant currency basis) year over year to $72 million. Operating premiums, fees & other revenues were $622 million, almost unchanged from the prior-year period and up 4% on a constant currency basis, driven by growth in employee benefits and accident & health.
MetLife Holdings
Operating earnings for MetLife Holdings were $199 million, down 25% year over year due to unfavorable underwriting and certain insurance adjustments, including charges related to separation activities. These adjustments were partially offset by lower expenses, including those related to the sale of the MetLife Premier Client Group in 2016.
Brighthouse Financial
Brighthouse Financial reported operating earnings of $330 million, down 15% year over year, primarily due to life reserve changes and lower separate account fees. Operating premiums, fees & other revenues decreased 18.8% year over year to $1.3 billion, due to lower single premium income annuity sales.
Investment & Financial Update
In the reported quarter, net investment income increased 4% year over year to $5 billion. Variable investment income increased more than twofold to $301 million from $109 million in the year-ago quarter driven by the strong performance of private equity investments.
Book value per share decreased 2.6% year over year to $41.14.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
At this time, MetLife's stock has a poor Growth score of 'D', however its Momentum is doing a lot better with a 'B'. Charting a somewhat similar path, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile 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.
Our style scores indicate that the stock is more suitable for value investors than momentum investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Why Is MetLife (MET) Up 3.8% Since the Last Earnings Report?
A month has gone by since the last earnings report for MetLife, Inc. (MET - Free Report) . Shares have added about 3.8% in that time frame, underperforming the market.
Will the recent positive trend continue leading up to the stock’s next earnings release, or is it due for a pullback? 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 Q4 Earnings Beat Estimates, Revenues Miss
MetLife, Inc.’s fourth-quarter 2016 earnings of $1.35 per share beat the Zacks Consensus Estimate by a penny and increased 1.5% year over year.
The company generated operating revenues of $17.2 billion, missing the Zacks Consensus Estimate of $17.3 billion. MetLife’s premiums, fees and other revenues slipped 0.71% year over year to $12.3 billion.
In the reported quarter, the company’s total operating expenses increased 1% year over year to $15.4 billion.
Segment Details
U.S.
Operating earnings in this segment increased 19% year over year to $516 million, led by higher contribution from the sub-segments Group Benefits & Retirement and Income Solutions. Operating premiums, fees & other revenues increased 4% to $5.8 billion.
Asia
Operating earnings were up 13% (or 8% on a constant currency basis) year over year to $354 million, driven by volume growth, favorable markets and a tax-related item in Japan. Operating premiums, fees & other revenues in Asia increased 5% (down 2% on a constant currency basis) to $2.1 billion.
Latin America
Operating earnings were $122 million, down 5% (up 5% on a constant currency basis) year over year as an outcome of a one-time tax benefit in the prior-year quarter and higher expenses in the reported quarter. Operating premiums, fees & other revenues were $913 million, down 2% (up 5% on a constant currency basis).
EMEA
Operating earnings from EMEA increased 33% (or 44% on constant currency basis) year over year to $72 million. Operating premiums, fees & other revenues were $622 million, almost unchanged from the prior-year period and up 4% on a constant currency basis, driven by growth in employee benefits and accident & health.
MetLife Holdings
Operating earnings for MetLife Holdings were $199 million, down 25% year over year due to unfavorable underwriting and certain insurance adjustments, including charges related to separation activities. These adjustments were partially offset by lower expenses, including those related to the sale of the MetLife Premier Client Group in 2016.
Brighthouse Financial
Brighthouse Financial reported operating earnings of $330 million, down 15% year over year, primarily due to life reserve changes and lower separate account fees. Operating premiums, fees & other revenues decreased 18.8% year over year to $1.3 billion, due to lower single premium income annuity sales.
Investment & Financial Update
In the reported quarter, net investment income increased 4% year over year to $5 billion. Variable investment income increased more than twofold to $301 million from $109 million in the year-ago quarter driven by the strong performance of private equity investments.
Book value per share decreased 2.6% year over year to $41.14.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last one month period as none of them issued any earnings estimate revisions.
MetLife, Inc. Price and Consensus
MetLife, Inc. Price and Consensus | MetLife, Inc. Quote
VGM Scores
At this time, MetLife's stock has a poor Growth score of 'D', however its Momentum is doing a lot better with a 'B'. Charting a somewhat similar path, the stock was allocated a grade of 'A' on the value side, putting it in the top quintile 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.
Our style scores indicate that the stock is more suitable for value investors than momentum investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.