On Aug 21, 2014,
Lincoln National Corporation
) scaled a 52-week high of $53.86 after posting strong
second-quarter financial results, which included a 7.30% positive
earnings surprise. With respect to earnings trend, this life
insurer has delivered positive earnings surprises in the trailing
four quarters with an average beat of 7.38%.
In fact, shares of Lincoln National rose nearly 1.6% over the last
few trading sessions to close at $53.83, since the company reported
second-quarter earnings results on Jul 30, 2014. Furthermore, the
one-year return on the stock is 23.60%, above the S&P 500's
return of 20.32% as well as that of other players in the insurance
industry like AEGON N.V. (
), ING Groep N.V. (
) and MetLife, Inc. (
) that generated returns of 0.78%, 21.05% and 11.72%, respectively
over the same period.
In the second quarter, Lincoln National's bottom line not only
surpassed the Zacks Consensus Estimate but also improved year over
year on growth in total account balances and improved revenues from
double-digit growth in premiums and fee income.
Higher sales in re-priced products and change in business mix to
higher return generating products also aided the upside. Moreover,
the top line exceeded the Zacks Consensus Estimate and was higher
than the year-ago quarter revenues. Although expenses increased in
the quarter, a higher-than-expected rise in revenues aided Lincoln
During the reported quarter, the company's financial position also
remained quite strong, which helped it to increase the existing
share repurchase program to $1.0 billion and repurchase shares
worth $150 million, thereby reducing the share count. This not only
enhanced investors' returns but also was responsible for boosting
earnings per share.
Other positive tidings at the company that contributed to the
52-week high were the enhancement of the Ibboston Insight Series
investment line-up at Lincoln National's employer-sponsored
retirement plan program, Lincoln DirectorSM and expansion of the
portfolio of Survivorship life insurance solutions.
Currently, Lincoln National carries a Zacks Rank #2 (Buy).
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LINCOLN NATL-IN (LNC): Free Stock Analysis
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