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.
Lincoln National (LNC) Q1 Earnings: Is a Surprise in Store?
Read MoreHide Full Article
Lincoln National Corp. (LNC - Free Report) is scheduled to report first-quarter 2017 results on May 3, after market close.
Last quarter, Lincoln National surpassed the Zacks Consensus Estimate by 3.5%. Let’s see how things are shaping up for this announcement.
Q1 Flashback
The company’s wide and expansive independent brokers, agents and financial advisors’ network must have expanded the distribution reach of the company’s products and added to the top line.
We expect earnings upside from disciplined expense management and incremental capital management.
The life insurance segment results are expected to show top-line growth from a change in sales mix as the company is focusing on an increase in sales of product without long-term guarantees and scaling back of sale of products with long-term guarantee.
The bottom line will benefit from the company’s expense management efforts. The company is successfully managing general and administrative expenses in a period of slower revenue growth.
The company has started to report strategic digitization expense in other operations. In the fourth quarter, it was $8 million, pre-tax. The company expects roughly $10 million a quarter in 2017.
Finally, Lincoln National’s share repurchase driven by its balance sheet strength and capital generation will further lift its bottom line.
Lincoln National Corporation Price and EPS Surprise
Our proven model does not conclusively show that Lincoln National 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: Lincoln National has an Earning ESP of 0.00%. This is because the Most Accurate estimate stands at $1.62 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: Lincoln National carries a Zacks Rank #3, which increases the predictive power of ESP. However, an Earnings ESP of 0.00% makes surprise prediction difficult.
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.
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.
The Priceline Group Inc. has an Earnings ESP of +2.06% and a Zacks Rank #3. The company is expected to report first-quarter earnings results on May 9.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Lincoln National (LNC) Q1 Earnings: Is a Surprise in Store?
Lincoln National Corp. (LNC - Free Report) is scheduled to report first-quarter 2017 results on May 3, after market close.
Last quarter, Lincoln National surpassed the Zacks Consensus Estimate by 3.5%. Let’s see how things are shaping up for this announcement.
Q1 Flashback
The company’s wide and expansive independent brokers, agents and financial advisors’ network must have expanded the distribution reach of the company’s products and added to the top line.
We expect earnings upside from disciplined expense management and incremental capital management.
The life insurance segment results are expected to show top-line growth from a change in sales mix as the company is focusing on an increase in sales of product without long-term guarantees and scaling back of sale of products with long-term guarantee.
The bottom line will benefit from the company’s expense management efforts. The company is successfully managing general and administrative expenses in a period of slower revenue growth.
The company has started to report strategic digitization expense in other operations. In the fourth quarter, it was $8 million, pre-tax. The company expects roughly $10 million a quarter in 2017.
Finally, Lincoln National’s share repurchase driven by its balance sheet strength and capital generation will further lift its bottom line.
Lincoln National Corporation Price and EPS Surprise
Lincoln National Corporation Price and EPS Surprise | Lincoln National Corporation Quote
Earnings Whispers
Our proven model does not conclusively show that Lincoln National 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: Lincoln National has an Earning ESP of 0.00%. This is because the Most Accurate estimate stands at $1.62 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: Lincoln National carries a Zacks Rank #3, which increases the predictive power of ESP. However, an Earnings ESP of 0.00% makes surprise prediction difficult.
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.
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.
The Priceline Group Inc. has an Earnings ESP of +2.06% and a Zacks Rank #3. The company is expected to report first-quarter earnings results on May 9.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>