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MetLife (MET) to Announce Q2 Earnings: Here's What to Expect?
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MetLife, Inc. (MET - Free Report) is set to report second-quarter 2022 results on Aug 3, after the closing bell.
In the last reported quarter, the leading insurance-based global financial services company reported adjusted operating earnings per share of $2.08, beating the Zacks Consensus Estimate by 27.6%, due to 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.
The Zacks Consensus Estimate for second-quarter earnings per share of $1.55 has witnessed no movement in the past week. The estimated figure suggests a decrease of 34.6% from the prior-year reported number. The consensus estimate for second-quarter revenues of $16.5 billion indicates a 1.8% rise from the year-ago reported figure.
MetLife beat the consensus estimate in each of the prior four quarters, with the average being 42.9%. This is depicted in the graph below:
MetLife’s second-quarter revenues are likely to reflect benefits stemming from higher premiums. The Zacks Consensus Estimate for premiums is pegged at $10,481 million, which suggests growth of 14.8% from the prior-year quarter.
The consensus mark for adjusted earnings in Latin America indicates a 31.1% rise from the year-ago period’s actuals. Similarly, the Zacks Consensus Estimate for adjusted earnings in Group Benefits indicates an 18.1% rise from the prior-year period.
However, the consensus mark for net investment income indicates a 16.9% year-over-year decline from the year-ago period. Also, the Zacks Consensus Estimate for MET’s U.S. business’ adjusted earnings is pegged at $639.6 million, which suggests a decline of 29.1% from the prior-year quarter’s reading. This might have led to a year-over-year decline in profits.
Further, the consensus mark for adjusted earnings in Retirement Income Solutions indicates a 47.4% decline from the second quarter of 2021. Rising costs and expenses might have affected the company’s profit levels in the to-be-reported quarter. This makes an earnings beat for the June quarter of 2022 uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for MetLife this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. The Most Accurate Estimate is currently pegged at $1.55 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 currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for MetLife, here are some companies in the broader Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Atlas Corp. has an Earnings ESP of +9.72% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Atlas’ bottom line for the to-be-reported quarter is pegged at 36 cents per share, which has witnessed two upward estimate revisions in the past 30 days compared to none in the opposite direction. ATCO beat earnings estimates twice in the trailing four quarters and missed on the other two occasions, delivering an average surprise of 20.1%.
The Zacks Consensus Estimate for Lemonade’s top line for the to-be-reported quarter is pegged at $47.5 million, implying a 68.5% improvement from the year-ago figure. LMND beat earnings estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 4.6%.
Coinbase Global, Inc. (COIN - Free Report) has an Earnings ESP of +52.69% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Coinbase Global’s top line for the to-be-reported quarter is pegged at $877.3 million. The consensus estimate for earnings per share has witnessed one upward revision in the past 30 days compared to none in the opposite direction. COIN beat earnings estimates twice in the trailing four quarters and missed on the other two occasions.
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MetLife (MET) to Announce Q2 Earnings: Here's What to Expect?
MetLife, Inc. (MET - Free Report) is set to report second-quarter 2022 results on Aug 3, after the closing bell.
In the last reported quarter, the leading insurance-based global financial services company reported adjusted operating earnings per share of $2.08, beating the Zacks Consensus Estimate by 27.6%, due to 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.
Let’s see how things have shaped up prior to the second-quarter earnings announcement.
Trend in Estimate Revision
The Zacks Consensus Estimate for second-quarter earnings per share of $1.55 has witnessed no movement in the past week. The estimated figure suggests a decrease of 34.6% from the prior-year reported number. The consensus estimate for second-quarter revenues of $16.5 billion indicates a 1.8% rise from the year-ago reported figure.
MetLife beat the consensus estimate in each of the prior four quarters, with the average being 42.9%. This is depicted in the graph below:
MetLife, Inc. Price and EPS Surprise
MetLife, Inc. price-eps-surprise | MetLife, Inc. Quote
Factors to Note
MetLife’s second-quarter revenues are likely to reflect benefits stemming from higher premiums. The Zacks Consensus Estimate for premiums is pegged at $10,481 million, which suggests growth of 14.8% from the prior-year quarter.
The consensus mark for adjusted earnings in Latin America indicates a 31.1% rise from the year-ago period’s actuals. Similarly, the Zacks Consensus Estimate for adjusted earnings in Group Benefits indicates an 18.1% rise from the prior-year period.
However, the consensus mark for net investment income indicates a 16.9% year-over-year decline from the year-ago period. Also, the Zacks Consensus Estimate for MET’s U.S. business’ adjusted earnings is pegged at $639.6 million, which suggests a decline of 29.1% from the prior-year quarter’s reading. This might have led to a year-over-year decline in profits.
Further, the consensus mark for adjusted earnings in Retirement Income Solutions indicates a 47.4% decline from the second quarter of 2021. Rising costs and expenses might have affected the company’s profit levels in the to-be-reported quarter. This makes an earnings beat for the June quarter of 2022 uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for MetLife this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. The Most Accurate Estimate is currently pegged at $1.55 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 currently carries a Zacks Rank #3.
Stocks to Consider
While an earnings beat looks uncertain for MetLife, here are some companies in the broader Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Atlas Corp. has an Earnings ESP of +9.72% and a Zacks Rank of 2.
The Zacks Consensus Estimate for Atlas’ bottom line for the to-be-reported quarter is pegged at 36 cents per share, which has witnessed two upward estimate revisions in the past 30 days compared to none in the opposite direction. ATCO beat earnings estimates twice in the trailing four quarters and missed on the other two occasions, delivering an average surprise of 20.1%.
Lemonade, Inc. (LMND - Free Report) has an Earnings ESP of +12.50% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Lemonade’s top line for the to-be-reported quarter is pegged at $47.5 million, implying a 68.5% improvement from the year-ago figure. LMND beat earnings estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 4.6%.
Coinbase Global, Inc. (COIN - Free Report) has an Earnings ESP of +52.69% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for Coinbase Global’s top line for the to-be-reported quarter is pegged at $877.3 million. The consensus estimate for earnings per share has witnessed one upward revision in the past 30 days compared to none in the opposite direction. COIN beat earnings estimates twice in the trailing four quarters and missed on the other two occasions.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.