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Lincoln National (LNC) Q1 Earnings Beat Estimates, Up YoY
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Lincoln National Corporation’s (LNC - Free Report) first-quarter 2018 earnings of $1.97 per share surpassed the Zacks Consensus Estimate by 1.6%. Also, the bottom line increased about 3% year over year, led by higher fee income.
Operating revenues of $3.61 billion increased 3.1% year over year but missed the Zacks Consensus Estimate by 3.65%.
Insurance premium decreased 3.7% year over year to $777 million, fee income increased 7.5% to $1.46 billion.
Lincoln National Corporation Price, Consensus and EPS Surprise
Total expenses increased 4.9% to $3.17 billion year over year, mainly led by higher strategic digitization expense and interest and debt expense.
Strong Segment Results
Operating income in the Annuities segment decreased 5% year over year to $267 million. The year-ago quarter benefited from one-time tax adjustments. Total annuity deposits increased 25.3% from the year-ago quarter to $2.5 billion, driven by growth in variable annuities.
Operating income in Retirement Plan Services increased 16.2% year over year to $43 million, driven by growth in fee income and a lower tax rate. Total deposits grew 4.8% from the prior-year quarter to $2.36 billion. Operating income in Life Insurance segment was up 10.8% year over year to $144 million due to lower tax rate and growth of policies in-force.
Operating revenues increased 3.4% year over year to $1.66 billion. Operating income in Group Protection surged 314% from the year-ago quarter to $29 million. The upside was driven by an improvement in non-medical loss ratio. Operating revenues increased 2.2% year over year to $553 million.
Other Operations
The company incurred a loss of $58 million, wider than the loss of $31 million in the prior-year quarter.
Financial Update
As of Mar 31, 2018, Lincoln National’s book value per share, excluding accumulated other comprehensive income, climbed 7.7% year over year to $62.88.
Operating return on equity (ROE), excluding accumulated other comprehensive income and goodwill, declined 200 bps from the year-ago quarter to 14.4%.
The company ended the quarter with long-term debt of $5.65 billion, up 10.6% year over year.
Business Update
The company has completed the acquisition of Liberty Mutual’s group benefits business. The buyout is expected to create a single, powerful Group Benefits operation with industry-leading products, services and capabilities.
Zacks Rank and Other Stocks
Lincoln National carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Among the other players in the same space, the bottom line at Torchmark Corp. , Aflac Inc. (AFL - Free Report) and Genworth Financial Inc. (GNW - Free Report) beat their respective first-quarter estimates by 2.05%, 8.25% and 8.7%.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
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Lincoln National (LNC) Q1 Earnings Beat Estimates, Up YoY
Lincoln National Corporation’s (LNC - Free Report) first-quarter 2018 earnings of $1.97 per share surpassed the Zacks Consensus Estimate by 1.6%. Also, the bottom line increased about 3% year over year, led by higher fee income.
Operating revenues of $3.61 billion increased 3.1% year over year but missed the Zacks Consensus Estimate by 3.65%.
Insurance premium decreased 3.7% year over year to $777 million, fee income increased 7.5% to $1.46 billion.
Lincoln National Corporation Price, Consensus and EPS Surprise
Lincoln National Corporation Price, Consensus and EPS Surprise | Lincoln National Corporation Quote
Total expenses increased 4.9% to $3.17 billion year over year, mainly led by higher strategic digitization expense and interest and debt expense.
Strong Segment Results
Operating income in the Annuities segment decreased 5% year over year to $267 million. The year-ago quarter benefited from one-time tax adjustments.
Total annuity deposits increased 25.3% from the year-ago quarter to $2.5 billion, driven by growth in variable annuities.
Operating income in Retirement Plan Services increased 16.2% year over year to $43 million, driven by growth in fee income and a lower tax rate. Total deposits grew 4.8% from the prior-year quarter to $2.36 billion.
Operating income in Life Insurance segment was up 10.8% year over year to $144 million due to lower tax rate and growth of policies in-force.
Operating revenues increased 3.4% year over year to $1.66 billion.
Operating income in Group Protection surged 314% from the year-ago quarter to $29 million. The upside was driven by an improvement in non-medical loss ratio. Operating revenues increased 2.2% year over year to $553 million.
Other Operations
The company incurred a loss of $58 million, wider than the loss of $31 million in the prior-year quarter.
Financial Update
As of Mar 31, 2018, Lincoln National’s book value per share, excluding accumulated other comprehensive income, climbed 7.7% year over year to $62.88.
Operating return on equity (ROE), excluding accumulated other comprehensive income and goodwill, declined 200 bps from the year-ago quarter to 14.4%.
The company ended the quarter with long-term debt of $5.65 billion, up 10.6% year over year.
Business Update
The company has completed the acquisition of Liberty Mutual’s group benefits business. The buyout is expected to create a single, powerful Group Benefits operation with industry-leading products, services and capabilities.
Zacks Rank and Other Stocks
Lincoln National carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Among the other players in the same space, the bottom line at Torchmark Corp. , Aflac Inc. (AFL - Free Report) and Genworth Financial Inc. (GNW - Free Report) beat their respective first-quarter estimates by 2.05%, 8.25% and 8.7%.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>