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Globe Life (GL) to Report Q1 Earnings: What's in Store?

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Globe Life Inc. (GL - Free Report) is slated to report first-quarter 2020 results on Apr 22, after the closing bell.

Q1 Earnings & Revenue Expectations    

The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.2 billion, suggesting an improvement of 4.8% from the prior-year quarter.

The same for earnings per share is pegged at $1.73 cents, indicating growth of 5.5% from the year-ago reported figure.

Key Factors for Q1 Earnings

Globe Life first-quarter performance is likely to have benefited from higher premiums derived from its life and health insurance businesses. Thereby, the Zacks Consensus Estimate for first-quarter 2020 total premiums is pegged at $944 million, indicating an improvement of 5.9% from the year-ago quarter. Notably, first-quarter life and health premiums are pegged at $658 million and $286 million, respectively, suggesting growth of 5.4% and 7.1%, respectively, from the prior-year quarter.

Strength in net investment income is likely have bolstered Globe Life’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for first-quarter net investment income stands at $230 million, which indicates an improvement of 1.3% from the year-ago reported figure.

Efficient performance across all distribution channels is likely to have benefited the company’s underwriting results in the to-be-reported quarter. Share buybacks made by Globe Life are likely to have provided an additional boost to the first-quarter performance.

However, increased expenses due to higher healthcare and employee pension costs are likely to have impacted the first-quarter performance.

Earnings Surprise History

The company has beat estimates in three of the trailing four quarters. It has a trailing four-quarter positive earnings surprise of 1.24%, on average.

Globe Life Inc. Price and EPS Surprise

Globe Life Inc. Price and EPS Surprise

Globe Life Inc. price-eps-surprise | Globe Life Inc. Quote

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Globe Life this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: Globe Life has an Earnings ESP of -0.43%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Globe Life carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some stocks worth considering from the finance sector with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:

Virtu Financial, Inc. (VIRT - Free Report) has an Earnings ESP of +41.57% and a Zacks Rank #1. The company is slated to announce first-quarter 2020 earnings on May 7.

CURO Group Holdings Corp. (CURO - Free Report) has an Earnings ESP of +1.47% and a Zacks Rank #1. The company is scheduled to release first-quarter 2020 earnings on Apr 30.

Nasdaq, Inc. (NDAQ - Free Report) has an Earnings ESP of +1.15 % and a Zacks Rank of 3. The company is set to report first-quarter 2020 earnings on Apr 22.

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