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Why Is Sun Life (SLF) Down 2.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Sun Life (SLF - Free Report) . Shares have lost about 2.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Sun Life due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Sun Life Financial Inc. before we dive into how investors and analysts have reacted as of late.
Sun Life Financial Q3 Earnings Surpass Estimates, Dividend Raised
Sun Life Financial Inc. delivered a third-quarter 2025 underlying net income of $1.35 per share, which beat the Zacks Consensus Estimate by 3.8%. Moreover, the bottom line increased 4.6% year over year. The underlying net income was reported at $760.21 million (C$1,047 million), which increased 2.1% year over year. Wealth sales & asset management gross flows increased 46.8% year over year to $45.10 billion (C$62.12 billion) in the quarter under review. The new business contractual service margin was $323.83 million (C$446 million), up 15.3% year over year.
Segment Results
SLF Canada’s underlying net income increased 11.4% year over year to $306.41 million (C$422 million), driven by higher investment earnings, business growth, improved credit experience and higher fee income.
Underlying net income of SLF U.S. was $147 million, which decreased 33% year over year. The decrease was due to lower group benefits and dental results, offset by improved credit experience and higher investment earnings.
SLF Asset Management reported an underlying net income of $254 million (C$350 million), which grew 0.8% year over year. Asset Management witnessed higher net seed investment income and fee-related earnings.
SLF Asia reported an underlying net income of $164 million (C$226 million), which grew 31.6% year over year. Asia witnessed continued strong sales momentum and in-force business growth across markets, and higher contributions from India joint ventures, favorable mortality experience in International. It was offset by unfavorable credit experience
Financial Update
Global assets under management were $1.17 trillion (C$1,623 billion), up 5.4% year over year. Sun Life Assurance’s Life Insurance Capital Adequacy Test (LICAT) ratio was 138% as of Sept. 30, 2025, which contracted 900 basis points (bps). The LICAT ratio for Sun Life (including cash and other liquid assets) was 154%, which expanded 200 bps year over year.
Sun Life’s return on equity was 19.3% in the third quarter, which contracted 450 bps year over year. The underlying return on equity of 18.3% expanded 40 bps year over year. The leverage ratio of 21.6% deteriorated 120 bps year over year.
Dividend Update
In the reported quarter, the company’s board of directors increased its dividend by 4.5% to 92 cents per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Sun Life has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Sun Life has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Sun Life is part of the Zacks Insurance - Life Insurance industry. Over the past month, Lincoln National (LNC - Free Report) , a stock from the same industry, has gained 4.2%. The company reported its results for the quarter ended September 2025 more than a month ago.
Lincoln National reported revenues of $4.78 billion in the last reported quarter, representing a year-over-year change of +3.8%. EPS of $2.04 for the same period compares with $2.06 a year ago.
For the current quarter, Lincoln National is expected to post earnings of $1.90 per share, indicating a change of -0.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Lincoln National. Also, the stock has a VGM Score of F.
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Why Is Sun Life (SLF) Down 2.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Sun Life (SLF - Free Report) . Shares have lost about 2.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Sun Life due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Sun Life Financial Inc. before we dive into how investors and analysts have reacted as of late.
Sun Life Financial Q3 Earnings Surpass Estimates, Dividend Raised
Sun Life Financial Inc. delivered a third-quarter 2025 underlying net income of $1.35 per share, which beat the Zacks Consensus Estimate by 3.8%. Moreover, the bottom line increased 4.6% year over year. The underlying net income was reported at $760.21 million (C$1,047 million), which increased 2.1% year over year. Wealth sales & asset management gross flows increased 46.8% year over year to $45.10 billion (C$62.12 billion) in the quarter under review.
The new business contractual service margin was $323.83 million (C$446 million), up 15.3% year over year.
Segment Results
SLF Canada’s underlying net income increased 11.4% year over year to $306.41 million (C$422 million), driven by higher investment earnings, business growth, improved credit experience and higher fee income.
Underlying net income of SLF U.S. was $147 million, which decreased 33% year over year. The decrease was due to lower group benefits and dental results, offset by improved credit experience and higher investment earnings.
SLF Asset Management reported an underlying net income of $254 million (C$350 million), which grew 0.8% year over year. Asset Management witnessed higher net seed investment income and fee-related earnings.
SLF Asia reported an underlying net income of $164 million (C$226 million), which grew 31.6% year over year. Asia witnessed continued strong sales momentum and in-force business growth across markets, and higher contributions from India joint ventures, favorable mortality experience in International. It was offset by unfavorable credit experience
Financial Update
Global assets under management were $1.17 trillion (C$1,623 billion), up 5.4% year over year. Sun Life Assurance’s Life Insurance Capital Adequacy Test (LICAT) ratio was 138% as of Sept. 30, 2025, which contracted 900 basis points (bps). The LICAT ratio for Sun Life (including cash and other liquid assets) was 154%, which expanded 200 bps year over year.
Sun Life’s return on equity was 19.3% in the third quarter, which contracted 450 bps year over year. The underlying return on equity of 18.3% expanded 40 bps year over year. The leverage ratio of 21.6% deteriorated 120 bps year over year.
Dividend Update
In the reported quarter, the company’s board of directors increased its dividend by 4.5% to 92 cents per share.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, Sun Life has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Sun Life has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Sun Life is part of the Zacks Insurance - Life Insurance industry. Over the past month, Lincoln National (LNC - Free Report) , a stock from the same industry, has gained 4.2%. The company reported its results for the quarter ended September 2025 more than a month ago.
Lincoln National reported revenues of $4.78 billion in the last reported quarter, representing a year-over-year change of +3.8%. EPS of $2.04 for the same period compares with $2.06 a year ago.
For the current quarter, Lincoln National is expected to post earnings of $1.90 per share, indicating a change of -0.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Lincoln National. Also, the stock has a VGM Score of F.