Globe Life Inc. Prepares for Q4 Earnings amid Mixed Market Performance
Company Overview and Upcoming Earnings Report
With a market cap of $9.5 billion, Globe Life Inc. (GL) offers a range of life and supplemental health insurance products, alongside annuities for lower middle- and middle-income families. Based in McKinney, Texas, the company is set to announce its fiscal Q4 earnings results on Wednesday, February 5, after the market closes.
Earnings Expectations
Analysts anticipate a profit of $3.10 per share from Globe Life, marking a 10.7% increase from $2.80 per share in the same quarter last year. The company has exceeded Wall Street’s earnings estimates in three of the last four quarters, despite missing expectations once. During Q3, Globe Life reported an adjusted EPS of $3.49, surpassing forecasts by 14.4%.
2024 Forecasts and Historical Performance
For fiscal 2024, projections indicate an EPS of $12.32, reflecting a 15.7% rise from the $10.65 reported in fiscal 2023. However, GL shares have experienced a 6% decline over the past year, significantly lagging behind the S&P 500 Index’s 22% increase and the Financial Select Sector SPDR Fund’s (XLF) 26.8% gain during the same period.
Factors Influencing Stock Performance
The primary factor for Globe Life’s disappointing stock performance is a report from April alleging misconduct and fraud within the company. Following the Q3 earnings announcement on October 23, shares dropped 1.3% due to revenues of $1.5 billion, which, despite a 5% year-over-year increase, slightly fell short of Wall Street estimates. In contrast, the adjusted EPS of $3.49 rose 28.8% from the previous year, exceeding projections by a notable margin.
Analyst Sentiment and Price Target
Wall Street analysts maintain a cautiously optimistic outlook on GL stock, currently assigning a “Moderate Buy” rating. Among the 11 analysts covering the stock, seven recommend a “Strong Buy,” while one suggests a “Moderate Buy,” and three are at a “Hold.” This sentiment has improved slightly in the past three months, when only six analysts issued a “Strong Buy.” The average price target for GL is set at $133.36, which indicates an 18.1% upside potential from current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
