Lincoln National Corporation
) is set to report first-quarter 2014 results on April 30, 2014.
Last quarter, it posted a 9.38% surprise. Let's see how things
are shaping up for this announcement.
Factors this Past Quarter
Lincoln National has taken a number of steps in the past
quarter to improve its operations, which should help the company
perform better going forward. Lincoln National had launched a
number of products that include the rollout of AdviceNextSM in
Jan 2014 and Lincoln MoneyGuard® II in March 2014. While
AdviceNextSM is aimed at providing advisors an access to
integrated tools and technologies to better serve clients,
MoneyGuard® II enhances the long-term care funding solutions
business. However, declining cash flow raises concern regarding
Lincoln National's execution of inorganic growth strategies.
Lower-than-expected investment income and reduced realized gains
due to a low interest rate environment further affect earnings
Further, in April 2014, the launch of the innovative motor
vehicle accident coverage, a 15.6% nationwide expansion of its
dental network - Lincoln DentalConnect® and the selection by the
Washington Metropolitan Area Transit Authority (with 6,200 plan
participants) to provide its employer-sponsored 457(b) plan
program were significant positives. All these efforts are
expected to help Lincoln National generate more revenues through
an expanded client base.
Our proven model does not conclusively show that Lincoln
National is likely to beat earnings this quarter. That is because
a stock needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Zero Zacks ESP:
That is because both the Most Accurate estimate and the
Zacks Consensus Estimate stand at $1.30 per share, making the
Zacks Rank #3 (Hold):
Lincoln National's Zacks Rank #3 increases the predictive power
of ESP, but when combined with a zero ESP, it makes surprise
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing zero or negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
) with Earnings ESP of +1.22% and Zacks Rank #2 (Buy).
Sun Life Financial Inc.
) with Earnings ESP of +3.08% and Zacks Rank #2.
American International Group Inc.
) with Earnings ESP of +0.94% and Zacks Rank #3.
AMER INTL GRP (AIG): Free Stock Analysis
LINCOLN NATL-IN (LNC): Free Stock Analysis
PRIMERICA INC (PRI): Free Stock Analysis
SUN LIFE FINL (SLF): Free Stock Analysis
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