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Will Athene (ATH) Retain its Surprise Streak in Q4 Earnings?

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Athene Holding Ltd. delivered positive surprise in three of the reported quarters of 2018. The Zacks Consensus Estimate for the fourth quarter is pegged at $1.22 per share, indicating a decline of 27.8% year over year.

Let’s see what’s in store for the company in the yet-to-be reported quarter.

The company continues to benefit from its multi-channel distribution platform. Better pricing is likely to add to the upside.

Retail sales likely have improved banking on introduction of new products and expansion in the Financial Institutions channel. Retail annuity business sales are expected to be solid across all the leading carriers.

The addition of new counterparties will continue to support Flow Reinsurance results.

Thus, organic deposits are likely to aid banking, given better performances at Retail and flow in pension risk transfer businesses.

Investment income is likely to benefit from accelerated pace in rate hikes. The company estimates average invested assets between $101 billion and $102 billion.

What Our Quantitative Model Predicts

Our proven model shows that Athene Holding is likely to beat on earnings this reporting season. This is because the stock has the right combination of positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).

Earnings ESP: Athene Holding has an Earnings ESP of +2.29%. This is because the Most Accurate Estimate of $1.25 is pegged higher than the Zacks Consensus Estimate of $1.22. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Athene Holding Ltd. Price and EPS Surprise

Zacks Rank: Athene Holding carries a Zacks Rank #2, which when combined with a positive ESP makes us confident of a positive earnings surprise.

We caution against Zacks Rank #4 or 5 (Strong Sell) stocks going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Other Stocks to Consider

Some other stocks from the finance sector with the right combination of elements to surpass estimates this time around are as follows:

Americold Realty Trust (COLD - Free Report) is set to report fourth-quarter earnings on Feb 21. The company has an Earnings ESP of +12.94% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agree Realty Corporation (ADC - Free Report) has an Earnings ESP of +0.20% and a Zacks Rank of 3. The company is slated to announce fourth-quarter earnings on Feb 21.

Bank Of Montreal (BMO - Free Report) has an Earnings ESP of +0.29% and a Zacks Rank of 3. The company is scheduled to release fourth-quarter earnings on Feb 26.

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