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What's in Store for Lincoln National (LNC) in Q2 Earnings?

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Lincoln National Corp. (LNC - Free Report) is scheduled to report second-quarter 2018 results on Aug 1, after market close.

The company’s Retirement Plan Services segment earnings are likely to increase, driven by consistent growth in deposits, net flows and assets, Its strategy and franchise are expected to drive results.

We expect an increase in total Life Insurance sales in the second quarter on the back of higher sales of Variable Universal Life and term products, combined with continued strong demand for MoneyGuard. Moreover, a favorable macro backdrop allows the company to improve its competitive position in Universal Life and Individual Universal Life. This will aid sales diversification and growth.

The company’s Life business got off to a great start this year and the company’s outlook for the business remains strong. It expects growth to continue, driven by further product diversification and depth and breadth of the company’s distribution.

In the company’s Annuities business, we expect higher sales of both fixed and variable annuities, led by strategies to restore annuity sales by combining product actions and distribution effectiveness. New business is expected to grow on the back of an index variable annuity product introduced in the second quarter.

In order to fund the acquisition of Liberty's Group Benefits business, the company did not buy back any shares in the second quarter. The bottom line, therefore, will be bereft of the accretion from share buybacks.

Earnings Surprise

The company boasts an attractive earnings surprise history. It beat estimates in each of the trailing four quarters, delivering an average positive surprise of 5.22%.

Lincoln National Corporation Price and EPS Surprise

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.

Earnings ESP: Lincoln National has an Earnings 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 #2, which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

Stocks That Warrant a Look

Here are some companies that you may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

American Financial Group, Inc. (AFG - Free Report) is expected to report second-quarter 2018 results on Aug 1. The company has an Earnings ESP of +1.68% and a Zacks Rank #2. 

You can see the complete list of today’s Zacks #1 Rank stocks here.

XL Group Ltd. is expected to report second-quarter 2018 earnings on Jul 31. The company has an Earnings ESP of +6.37% and a Zacks Rank #3.

NMI Holdings Inc. (NMIH - Free Report) has an Earnings ESP of +1.54% and a Zacks Rank #1. The company is expected to report second-quarter earnings on Aug 1.

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