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MetLife (MET) Down 0.1% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for MetLife (MET - Free Report) . Shares have lost about 0.1% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is MetLife due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

MetLife Q1 Earnings Beat Estimates, Revenues Miss

MetLife, Inc.’s first-quarter 2019 operating earnings of $1.48 per share beat the Zacks Consensus Estimate by 13.9%. The bottom line also rose 8.8% year over year. Earnings gained from an increase in revenues, partly offset by rise in expenses.

Behind the Headlines

The company generated operating revenues of $15.45 billion, up 2% year over year. However, the top line missed the Zacks Consensus Estimate by 4.8%.
Adjusted premiums, fees & other revenues of $11.2 billion increased 4% year over year.  Net investment income of $4.91 billion increased 31% year over year.

Total expenses of $14.6 million were up 10.7% year over year owing to higher policyholder benefits and claims, and interest credited to policyholders’ accounts.

Book value per share, excluding accumulated other comprehensive income (AOCI), other than foreign currency translation adjustments (FCTA) was $45.58 per share, up 5% year over year.

Quarterly Segment Details

U.S.

Adjusted earnings in this segment increased 11% year over year to $724 million, driven by favorable underwriting and volume growth, partially offset by lower investment margins. Adjusted premiums, fees & other revenues were $6.1 billion, up 7%.

Asia

Operating earnings of $356 million increased 9% (13% on constant currency basis) year over year, driven by volume growth. Adjusted premiums, fees & other revenues were $2.1 billion, down 2% (up 1% on constant currency basis).

Latin America

Operating earnings were $134 million, down 4% (down 1% at constant currency) year over year, due to higher expenses and unfavorable underwriting, which was to some extent offset by favorable investment returns.

Adjusted premiums, fees & other revenues were $942 million, down 5% (up 4% at constant currency).

EMEA

Operating earnings from EMEA increased 6% (up 23% on constant currency basis) year over year to $86 million, driven by favorable underwriting and volume growth.

Adjusted premiums, fees & other revenues were $659 million, down 3% year over year but up 5% at constant currency.

MetLife Holdings

Adjusted operating earnings from MetLife Holdings came in at $317 million, down 25% year over year.

Operating premiums, fees & other revenues were $1.27 billion, down 5% year over year.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

Currently, MetLife 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 A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. 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 these revisions indicates a downward shift. Notably, MetLife has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


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