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.
What's in Store for MetLife (MET) Stock in Q3 Earnings?
Read MoreHide Full Article
MetLife Inc.’s (MET - Free Report) third-quarter 2018 earnings release scheduled on Nov 1 is expected to showcase revenue growth.
The company’s U.S. segment which consists of Group Benefits, Retirement and Income Solutions, and Property and Casualty, should report an increase in premium and fees.
Property & Casualty or P&C adjusted earnings should be driven by favorable underwriting margins in both auto and home.
Its Asia segment should gain from volume growth, higher investment margin and lower tax, partly offset by higher expense. Sales should increase in its Japan business as the company is promoting the sale of accident and health products and shifting away from life products.
In its Latin America segment, the company should report an increase in sales led by higher direct marketing, which should lead to volume growth. This should be, however, offset by higher taxes in the region.
EMEA adjusted earnings should have gained from expense margin improvement, as well as volume growth in Turkey and Western Europe. This should have been partially offset by the impact of the U.S. tax reform.
The company is making investments in technological improvement. It anticipates initiative costs of roughly $330 million pretax in 2018 and plans to spend $1.0 billion by 2020. These costs will put pressure on margins before generating benefits and the effect of the same will be felt in the impending quarterly results.
Earnings Surprise History
The company boasts an attractive earnings surprise history. It beat estimates in each of the last four quarters with an average positive surprise of 12.34%. This is depicted in the chart below:
Our proven model does not conclusively show that MetLife is likely to beat on earnings this quarter to be reported. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1, 2 or 3 for this to happen. But that is not the case here as you will see below.
Earnings ESP: MetLife 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: MetLife carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company needs to have a positive ESP to be confident about an earnings surprise. Therefore, this combination leaves surprise prediction inconclusive.
Stocks That Warrant a Look
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:
Prudential Financial, Inc. (PRU - Free Report) is expected to report third-quarter 2018 earnings results on Nov 7. The company has an Earnings ESP of +0.13% and a Zacks Rank #2 (Buy).
CNA Financial Corporation (CNA - Free Report) is expected to report third-quarter 2018 earnings results on Nov 5. The company has an Earnings ESP of +4.19% and a Zacks Rank #2.
Willis Tower Watson Public Limited Company has an Earnings ESP of +3.91% and a Zacks Rank #3. The company is expected to report third-quarter earnings results on Nov 2.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
Image: Bigstock
What's in Store for MetLife (MET) Stock in Q3 Earnings?
MetLife Inc.’s (MET - Free Report) third-quarter 2018 earnings release scheduled on Nov 1 is expected to showcase revenue growth.
The company’s U.S. segment which consists of Group Benefits, Retirement and Income Solutions, and Property and Casualty, should report an increase in premium and fees.
Property & Casualty or P&C adjusted earnings should be driven by favorable underwriting margins in both auto and home.
Its Asia segment should gain from volume growth, higher investment margin and lower tax, partly offset by higher expense. Sales should increase in its Japan business as the company is promoting the sale of accident and health products and shifting away from life products.
In its Latin America segment, the company should report an increase in sales led by higher direct marketing, which should lead to volume growth. This should be, however, offset by higher taxes in the region.
EMEA adjusted earnings should have gained from expense margin improvement, as well as volume growth in Turkey and Western Europe. This should have been partially offset by the impact of the U.S. tax reform.
The company is making investments in technological improvement. It anticipates initiative costs of roughly $330 million pretax in 2018 and plans to spend $1.0 billion by 2020. These costs will put pressure on margins before generating benefits and the effect of the same will be felt in the impending quarterly results.
Earnings Surprise History
The company boasts an attractive earnings surprise history. It beat estimates in each of the last four quarters with an average positive surprise of 12.34%. This is depicted in the chart below:
MetLife, Inc. Price and EPS Surprise
MetLife, Inc. Price and EPS Surprise | MetLife, Inc. Quote
Here is what the quantitative model predicts:
Our proven model does not conclusively show that MetLife is likely to beat on earnings this quarter to be reported. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1, 2 or 3 for this to happen. But that is not the case here as you will see below.
Earnings ESP: MetLife 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: MetLife carries a Zacks Rank #3 (Hold), which increases the predictive power of ESP. However, the company needs to have a positive ESP to be confident about an earnings surprise. Therefore, this combination leaves surprise prediction inconclusive.
Stocks That Warrant a Look
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:
Prudential Financial, Inc. (PRU - Free Report) is expected to report third-quarter 2018 earnings results on Nov 7. The company has an Earnings ESP of +0.13% and a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CNA Financial Corporation (CNA - Free Report) is expected to report third-quarter 2018 earnings results on Nov 5. The company has an Earnings ESP of +4.19% and a Zacks Rank #2.
Willis Tower Watson Public Limited Company has an Earnings ESP of +3.91% and a Zacks Rank #3. The company is expected to report third-quarter earnings results on Nov 2.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>