Brighthouse Financial Reports Lower Earnings, Impacts Stock Outlook
Earnings Miss Expectations; Revenue Gains Show Promise
Brighthouse Financial (BHF) reported quarterly earnings of $3.99 per share, falling short of the Zacks Consensus Estimate, which stood at $4.50 per share. This is a decrease from earnings of $4.18 per share from the same period last year. Notably, these figures have been adjusted for non-recurring items.
The reported earnings resulted in an earnings surprise of -11.33%. In the previous quarter, analysts had anticipated that this life insurance and annuity firm would achieve earnings of $4.36 per share, but it exceeded expectations with earnings of $5.57, yielding a surprise of 27.75%.
In the past four quarters, Brighthouse Financial managed to beat consensus EPS estimates on two occasions.
For the quarter that ended in September 2024, the company posted revenues of $2.18 billion, slightly missing the Zacks Consensus Estimate by 1.69%. This is an increase compared to revenues of $2.09 billion from a year ago. The company has also topped consensus revenue estimates two times over the last four quarters.
Looking ahead, the sustainability of the stock’s immediate price movement, influenced by these recent figures and future earnings expectations, will largely hinge on management’s insights during the upcoming earnings call.
This year, Brighthouse Financial shares have experienced a slight decline, approximately 0%, in contrast to the S&P 500’s robust gain of 24.3%.
Future Outlook for Brighthouse Financial
As investors ponder the future of Brighthouse Financial, the key question remains: what’s next for the stock?
While clear answers are difficult to determine, one useful measure is the company’s earnings outlook. This not only reflects current consensus earnings expectations for upcoming quarters, but also how these expectations have shifted recently.
Research indicates a strong link between stock movements in the near term and trends in earnings estimate revisions. Investors have the option to track these revisions independently or utilize tools like the Zacks Rank, which has a proven history of effectively utilizing earnings estimate revisions.
Prior to this earnings release, the estimate revisions trend for Brighthouse Financial appeared favorable. Although the magnitude and direction of these revisions may adjust following the latest earnings report, the current standing gives the stock a Zacks Rank of #2 (Buy), suggesting that shares are expected to outperform the market shortly. To explore other top-ranked stocks, view today’s Zacks #1 Rank (Strong Buy) list.
It will be illuminating to see how estimates for upcoming quarters and the current fiscal year may evolve in the coming days. Currently, the consensus EPS estimate stands at $4.44 on $2.22 billion in revenues for the upcoming quarter, as well as $18.64 on $8.71 billion in revenues for the ongoing fiscal year.
Investors should also consider that the industry’s outlook can significantly influence stock performance. At present, the Zacks Industry Rank for Insurance – Life Insurance places it in the top 20% of over 250 Zacks industries. Historically, the top 50% of Zacks-ranked industries outperform the bottom 50% by a ratio of more than 2 to 1.
Another notable stock in the broader Zacks Finance sector is Pagaya Technologies Ltd. (PGY), which has yet to report its results for the quarter ending September 2024. Its earnings release is scheduled for November 12.
Pagaya Technologies Ltd. is projected to report quarterly earnings of $0.25 per share, reflecting a year-over-year increase of +4.2%. In the last 30 days, the consensus EPS estimate for the quarter rose by 100% to its current level.
Anticipated revenues for Pagaya Technologies Ltd. are expected to reach $253.97 million, marking a 26.1% increase compared to the same quarter last year.
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Brighthouse Financial, Inc. (BHF): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
