MetLife Looks to Maintain Momentum with Q3 Earnings Report
New York-based MetLife, Inc. (MET) is a prominent global financial services firm, focusing on insurance, annuities, employee benefits, and asset management. The company boasts a market cap of $60.7 billion and delivers a wide array of protection and investment products to both individual and institutional clients. It is expected to announce its fiscal Q3 earnings results after the market closes on Wednesday, October 30.
Anticipated Earnings and Recent Performance
Prior to the earnings announcement, analysts are predicting a profit of $2.16 per share, reflecting a 9.6% increase from the $1.97 per share reported in the same quarter last year. In the past four quarters, MetLife has met or exceeded Wall Street’s earnings expectations two times while falling short on two occasions. Notably, in the most recent quarter, the company beat the consensus EPS estimate by a margin of 7%, driven by strong results within its group benefits division.
Fiscal 2024 Projections and Year-to-Date Growth
Looking ahead to fiscal 2024, analysts project MET to achieve an EPS of $8.58, which would mark a 17.1% increase from $7.33 in fiscal 2023.
MetLife has outperformed the broader markets during 2024, with shares rising 28.3% in comparison to the S&P 500 Index’s 22.7% gain and the Financial Select Sector SPDR Fund’s (XLF) 25.6% return year-to-date.
Recent Challenges and Analyst Sentiment
Despite reporting better-than-expected Q2 adjusted revenue of $18.7 billion and EPS of $2.28 on July 31, shares of MetLife fell 1.4% the following day. This decline was attributed to flat premiums, fees, and revenues, which did not show growth compared to the previous year. Furthermore, the Retirement and Income Solutions (RIS) segment saw earnings shrink due to lower recurring interest margins. The MetLife Holdings segment also faced a significant 27% drop in earnings, largely due to a reinsurance transaction that impacted investor confidence.
Currently, analysts maintain a positive outlook on MET stock, with an overall consensus rating of “Strong Buy.” Among the 16 analysts monitoring the stock, there are 11 “Strong Buys,” two “Moderate Buys,” and three “Holds.” This rating has become more optimistic compared to three months ago when only nine analysts suggested a “Strong Buy.” The average analyst price target for MET is $90.36, indicating a modest potential upside of 6.5% from current levels.
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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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