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What Awaits Lincoln National (LNC) This Earnings Season?
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Lincoln National Corp. (LNC - Free Report) is scheduled to report first-quarter 2018 results on May 2, after market close.
In the company’s Retirement Plan Services segment, strategies to improve wholesaler productivity, initiatives to increase employee contributions and investments into customer experience remain the key drivers of the solid momentum. On the back of these initiatives, we expect to see growth in deposits, net flows, assets and earnings. The Zacks Consensus Estimate for operating income from this segment is $42 million.
We expect an increase in total Life Insurance sales in the first quarter from higher Executive Benefit sales and gains in Variable Universal Life and term products, combined with continued strong demand for MoneyGuard.
Moreover, a more favorable macro backdrop is allowing the company to improve its competitive position in Universal Life and Individual Universal Life. This will help in sales diversification and growth. The Zacks Consensus Estimate for Life Insurance is $125 million.
In the company’s Annuities business, we expect higher sales of both fixed and variable annuities, led by strategies laid out to restore annuity sales by combining product actions and distribution effectiveness.
Also, the tax reform will benefit Lincoln National’s margin. Its balance sheet strength and solid capital generation, which enables it to buy back shares, will provide an extra support to the bottom line.
Earnings Surprise
The company boasts an attractive earnings surprise history. It beat estimates in each of the four reported quarters, with an average positive surprise of 9.46%
Lincoln National Corporation Price and EPS Surprise
Our proven model does not conclusively show that Lincoln National is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
Zacks ESP: Lincoln National has an Earning ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Lincoln National carries a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies from the insurance sector that you may want to consider as these have the right combination of elements to beat on earnings this quarter:
National General Holdings Corp is expected to report first-quarter 2018 earnings results on May 7. The company has an Earnings ESP of +5.59% and a Zacks Rank #1.
American Equity Investment Life Holding Company (AEL - Free Report) has an Earnings ESP of +5.99% and a Zacks Rank #3. The company is expected to report first-quarter earnings results on May 2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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What Awaits Lincoln National (LNC) This Earnings Season?
Lincoln National Corp. (LNC - Free Report) is scheduled to report first-quarter 2018 results on May 2, after market close.
In the company’s Retirement Plan Services segment, strategies to improve wholesaler productivity, initiatives to increase employee contributions and investments into customer experience remain the key drivers of the solid momentum. On the back of these initiatives, we expect to see growth in deposits, net flows, assets and earnings. The Zacks Consensus Estimate for operating income from this segment is $42 million.
We expect an increase in total Life Insurance sales in the first quarter from higher Executive Benefit sales and gains in Variable Universal Life and term products, combined with continued strong demand for MoneyGuard.
Moreover, a more favorable macro backdrop is allowing the company to improve its competitive position in Universal Life and Individual Universal Life. This will help in sales diversification and growth. The Zacks Consensus Estimate for Life Insurance is $125 million.
In the company’s Annuities business, we expect higher sales of both fixed and variable annuities, led by strategies laid out to restore annuity sales by combining product actions and distribution effectiveness.
Also, the tax reform will benefit Lincoln National’s margin. Its balance sheet strength and solid capital generation, which enables it to buy back shares, will provide an extra support to the bottom line.
Earnings Surprise
The company boasts an attractive earnings surprise history. It beat estimates in each of the four reported quarters, with an average positive surprise of 9.46%
Lincoln National Corporation Price and EPS Surprise
Lincoln National Corporation Price and EPS Surprise | Lincoln National Corporation Quote
Here is what our quantitative model predicts:
Our proven model does not conclusively show that Lincoln National is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
Zacks ESP: Lincoln National has an Earning ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Lincoln National carries a Zacks Rank #3, which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies from the insurance sector that you may want to consider as these have the right combination of elements to beat on earnings this quarter:
American Financial Group, Inc. (AFG - Free Report) is expected to report first-quarter 2018 earnings results on May 2. The company has an Earnings ESP of +4.46% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
National General Holdings Corp is expected to report first-quarter 2018 earnings results on May 7. The company has an Earnings ESP of +5.59% and a Zacks Rank #1.
American Equity Investment Life Holding Company (AEL - Free Report) has an Earnings ESP of +5.99% and a Zacks Rank #3. The company is expected to report first-quarter earnings results on May 2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>