It has been about a month since the last earnings report for MetLife (MET Quick QuoteMET - Free Report) . Shares have lost about 0.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is MetLife due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

MetLife's Q1 Earnings Beat on Strong Latin America Unit

MetLife reported first-quarter 2022 adjusted operating earnings of $2.08 per share, which outpaced the Zacks Consensus Estimate by 27.6%. However, the bottom line declined 5% year over year.

MET’s quarterly results gained on the back of higher premiums, fees and other revenues, solid contributions from the Latin America segment and reduced expenses. However, the upside was partly offset by lower net investment income.

Behind the Headlines

Adjusted operating revenues of MetLife amounted to $17.7 billion, which improved 6.1% year over year in the first quarter. The top line surpassed the consensus mark by 3.5%.

Adjusted premiums, fees and other revenues, excluding pension risk transfer (PRT), were $11.5 billion, which inched up 1% year over year. Adjusted net investment income fell 6% year over year to $5 billion in the quarter under review, primarily due to reduced variable investment income.

Total expenses of $15 billion decreased 1.5% year over year. Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT, deteriorated 20 basis points (bps) year over year to 19.2%.

Adjusted return on equity, excluding AOCI other than FCTA, deteriorated 180 bps year over year to 14.7%.

Segmental Performances

U.S.

The segment reported adjusted earnings of $693 million, which plunged 12% year over year in the first quarter due to reduced variable investment income. Adjusted premiums, fees and other revenues of $7.9 billion climbed 23% year over year.

Asia

Adjusted earnings in the segment amounted to $580 million, which fell 7% year over year in the quarter under review. On a constant currency (cc) basis, adjusted earnings slipped 4% year over year. Adjusted premiums, fees & other revenues declined 6% year over year to $2 billion in the first quarter, while the same inched up 1% year over year on a cc basis.

Latin America

Adjusted earnings of $142 million increased nearly four-fold year over year. Adjusted earnings at cc increased nearly five-fold on a year-over-year basis. Adjusted premiums, fees & other revenues advanced 18% or 22% on a cc basis year over year to $1 billion in the segment.

EMEA

The segment’s adjusted earnings were $52 million, which plunged 27% year over year in the first quarter. At cc, adjusted earnings fell 15% year over year. Adjusted premiums, fees & other revenues of $606 million declined 11% year over year, while the same on a cc basis slid 4% year over year.

MetLife Holdings

Adjusted earnings in the segment slumped 39% year over year to $377 million. Adjusted premiums, fees & other revenues fell 6% year over year to $1.1 billion in the quarter under review.

Corporate & Other

Adjusted loss of $117 million came in narrower than the prior-year quarter’s loss of $171 million.

Financial Update (as of Mar 31, 2022)

MetLife exited the first quarter with cash and cash equivalents of $23.5 billion, which increased 19.6% year over year. Total assets of $724.3 billion declined 5.9% year over year.

Long-term debt totaled $13.8 billion, down 4.6% year over year. Shareholders’ equity of $54 billion decreased 18.1% year over year.

Capital Deployment Update

MetLife bought back shares worth $915 million during the first quarter. Concurrent with the first-quarter results, the board of directors authorized a share repurchase program worth $3 billion.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -5.1% due to these changes.

VGM Scores

At this time, MetLife has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, MetLife has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

MetLife is part of the Zacks Insurance - Multi line industry. Over the past month, Enact Holdings, Inc. (ACT Quick QuoteACT - Free Report) , a stock from the same industry, has gained 3.1%. The company reported its results for the quarter ended March 2022 more than a month ago.

Enact Holdings, Inc. reported revenues of $269.59 million in the last reported quarter, representing a year-over-year change of