MetLife Inc. (MET - Free Report) is scheduled to report first-quarter 2017 results on May 3, after market close.
Last quarter, the company surpassed the Zacks Consensus Estimate by 0.75%. Let’s see how things are shaping up for this announcement.
Q1 Flashback
We expect the company’s Property and Casualty segment to suffer from the underperforming auto insurance business. The company has been taking targeted rate increases in auto insurance over the last past one year and will continue doing so in 2017. These price increases, along with other management actions, will drive the combined ratio higher. Overall P&C sales might also suffer due to price increases and management actions to drive value.
In its Japan business, we expect sales to decline as the company shifts its sales to higher return foreign currency-denominated life products from low-return yen life products.
In its EMEA segment, we expect to see an increase in sales led by a favorable shift toward higher-margin products.
In the Group Benefits segment, the company disclosed a strong start to the 2017 sales and renewal season. It witnessed continued strong persistency and solid sales across all market segments, as well as in both core and voluntary products.
The company’s bottom line will be aided by its expense management initiatives.
The company has been generating enough free cash flow which it uses for investment purposes along with buying back shares. Shares bought back in the quarter will add to the bottom line.
Currency fluctuation will likely impart volatility to earnings.
Earnings Whispers
Our proven model does not conclusively show that MetLife is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: MetLife has an Earning ESP of 0.00%. This is because the Most Accurate estimate stands at $1.27 per share, in line with the Zacks Consensus Estimate. 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 #4 (Sell). We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
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:
Prudential Financial Inc. (PRU - Free Report) will report first-quarter 2017 earnings results on May 3. The company has an Earnings ESP of +0.38% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Priceline Group Inc. has an Earnings ESP of +2.05% and a Zacks Rank #3. The company is expected to report first-quarter earnings results on May 9.
Moody’s Corporation (MCO - Free Report) has an Earnings ESP of +7.38% and a Zacks Rank #2. The company is expected to report first-quarter earnings results on May 5.
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Zacks Names "Single Best Pick to Double"
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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MetLife Inc. (MET - Free Report) is scheduled to report first-quarter 2017 results on May 3, after market close.
Last quarter, the company surpassed the Zacks Consensus Estimate by 0.75%. Let’s see how things are shaping up for this announcement.
Q1 Flashback
We expect the company’s Property and Casualty segment to suffer from the underperforming auto insurance business. The company has been taking targeted rate increases in auto insurance over the last past one year and will continue doing so in 2017. These price increases, along with other management actions, will drive the combined ratio higher. Overall P&C sales might also suffer due to price increases and management actions to drive value.
In its Japan business, we expect sales to decline as the company shifts its sales to higher return foreign currency-denominated life products from low-return yen life products.
In its EMEA segment, we expect to see an increase in sales led by a favorable shift toward higher-margin products.
In the Group Benefits segment, the company disclosed a strong start to the 2017 sales and renewal season. It witnessed continued strong persistency and solid sales across all market segments, as well as in both core and voluntary products.
The company’s bottom line will be aided by its expense management initiatives.
The company has been generating enough free cash flow which it uses for investment purposes along with buying back shares. Shares bought back in the quarter will add to the bottom line.
Currency fluctuation will likely impart volatility to earnings.
Earnings Whispers
Our proven model does not conclusively show that MetLife is likely to beat on earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: MetLife has an Earning ESP of 0.00%. This is because the Most Accurate estimate stands at $1.27 per share, in line with the Zacks Consensus Estimate. 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 #4 (Sell). We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
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:
Prudential Financial Inc. (PRU - Free Report) will report first-quarter 2017 earnings results on May 3. The company has an Earnings ESP of +0.38% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Priceline Group Inc. has an Earnings ESP of +2.05% and a Zacks Rank #3. The company is expected to report first-quarter earnings results on May 9.
Moody’s Corporation (MCO - Free Report) has an Earnings ESP of +7.38% and a Zacks Rank #2. The company is expected to report first-quarter earnings results on May 5.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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