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Why Is Brighthouse Financial (BHF) Down 13.6% Since Last Earnings Report?
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A month has gone by since the last earnings report for Brighthouse Financial (BHF - Free Report) . Shares have lost about 13.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Brighthouse Financial due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Brighthouse Financial, Inc. before we dive into how investors and analysts have reacted as of late.
BHF Q2 Earnings Miss Estimates, Investment Income Falls Y/Y
Brighthouse Financial, Inc. reported second-quarter 2026 adjusted net income of $4.45 per share, which missed the Zacks Consensus Estimate by 10.4%. However, the bottom line grew 29.7% year over year. The quarterly results benefited from improved underwriting margins in the Life and Run-off segments, reduced expenses and higher earnings in the Annuities business. However, lower adjusted net investment income and weaker annuity sales on a year-over-year basis partly offset the upside.
Behind the Headlines
Total operating revenues of $2.1 billion decreased 2% year over year, due to lower universal life and investment-type product policy fees, net investment income and other revenues, partly offset by slightly higher premiums. The figure was below the Zacks Consensus Estimate by 8.1%. Premiums of $165 million increased 0.6% year over year. Adjusted net investment income was $1.2 billion in the quarter under review, down 4.1% year over year, primarily due to lower alternative investment income. The adjusted net investment income yield was 4.17%. Total expenses were $396 million, which declined 49.1% year over year. Corporate expenses, pretax, were $204 million, up 1% year over year.
Quarterly Segmental Update of BHF
Annuities recorded an adjusted operating income of $349 million, up 5.1% year over year. Annuity sales decreased 7.1% year over year to $2.4 billion, driven by lower fixed annuity sales. Life’s adjusted operating loss was $4 million, narrower than the year-ago loss of $26 million. It reflected a lower underwriting margin and lower net investment income, partially offset by lower expenses. Life insurance sales increased 18.2% quarter over quarter to $39 million.
Adjusted operating loss at Run-off was $56 million, narrower than the year-ago loss of $83 million. It reflected a higher underwriting margin and lower expenses, partially offset by lower net investment income. Corporate & Other incurred an adjusted operating loss of $31 million, wider than the year-ago loss of $25 million, reflecting lower net investment income, partially offset by higher interest credited.
Financial Update of BHF
Cash and cash equivalents were $7.1 billion, up 28.2% year over year. Shareholders’ equity of $6.6 billion at the end of the second quarter of 2026 increased 15.4% year over year. As of June 30, 2026, book value per share, excluding accumulated other comprehensive income, was $156.10, up 8.3% year over year. As of June 30, 2026, Statutory combined total adjusted capital was $4.9 billion, down 12.5% year over year. As of June 30, 2026, the estimated combined risk-based capital ratio was between 430% and 450%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Brighthouse Financial has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. 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 this revision indicates a downward shift. It's no surprise Brighthouse Financial has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Brighthouse Financial (BHF) Down 13.6% Since Last Earnings Report?
A month has gone by since the last earnings report for Brighthouse Financial (BHF - Free Report) . Shares have lost about 13.6% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Brighthouse Financial due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Brighthouse Financial, Inc. before we dive into how investors and analysts have reacted as of late.
BHF Q2 Earnings Miss Estimates, Investment Income Falls Y/Y
Brighthouse Financial, Inc. reported second-quarter 2026 adjusted net income of $4.45 per share, which missed the Zacks Consensus Estimate by 10.4%. However, the bottom line grew 29.7% year over year. The quarterly results benefited from improved underwriting margins in the Life and Run-off segments, reduced expenses and higher earnings in the Annuities business. However, lower adjusted net investment income and weaker annuity sales on a year-over-year basis partly offset the upside.
Behind the Headlines
Total operating revenues of $2.1 billion decreased 2% year over year, due to lower universal life and investment-type product policy fees, net investment income and other revenues, partly offset by slightly higher premiums. The figure was below the Zacks Consensus Estimate by 8.1%. Premiums of $165 million increased 0.6% year over year. Adjusted net investment income was $1.2 billion in the quarter under review, down 4.1% year over year, primarily due to lower alternative investment income. The adjusted net investment income yield was 4.17%. Total expenses were $396 million, which declined 49.1% year over year. Corporate expenses, pretax, were $204 million, up 1% year over year.
Quarterly Segmental Update of BHF
Annuities recorded an adjusted operating income of $349 million, up 5.1% year over year. Annuity sales decreased 7.1% year over year to $2.4 billion, driven by lower fixed annuity sales. Life’s adjusted operating loss was $4 million, narrower than the year-ago loss of $26 million. It reflected a lower underwriting margin and lower net investment income, partially offset by lower expenses. Life insurance sales increased 18.2% quarter over quarter to $39 million.
Adjusted operating loss at Run-off was $56 million, narrower than the year-ago loss of $83 million. It reflected a higher underwriting margin and lower expenses, partially offset by lower net investment income. Corporate & Other incurred an adjusted operating loss of $31 million, wider than the year-ago loss of $25 million, reflecting lower net investment income, partially offset by higher interest credited.
Financial Update of BHF
Cash and cash equivalents were $7.1 billion, up 28.2% year over year.
Shareholders’ equity of $6.6 billion at the end of the second quarter of 2026 increased 15.4% year over year. As of June 30, 2026, book value per share, excluding accumulated other comprehensive income, was $156.10, up 8.3% year over year. As of June 30, 2026, Statutory combined total adjusted capital was $4.9 billion, down 12.5% year over year. As of June 30, 2026, the estimated combined risk-based capital ratio was between 430% and 450%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Brighthouse Financial has a poor Growth Score of F, however its Momentum Score is doing a lot better with an A. However, the stock has a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of D. 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 this revision indicates a downward shift. It's no surprise Brighthouse Financial has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.