Quantcast

MetLife (MET) Q1 Earnings Top Estimates, Revenues Rise Y/Y


Shutterstock photo

MetLife, Inc .'s MET first-quarter 2018 operating earnings of $1.36 per share beat the Zacks Consensus Estimate of $1.17 by 16.2%. However, the bottom line declined nearly 7% year over year.

MetLife, Inc. Price, Consensus and EPS Surprise

MetLife, Inc. Price, Consensus and EPS Surprise | MetLife, Inc. Quote

The reported quarter benefited from favorable underwriting, volume growth and a favorable positive impact of the tax reform.

The company generated operating revenues of $15.148 billion, up 1% year over year. However, the top line missed the Zacks Consensus Estimate by 3.4%.

Total expenses of $13.15 million declined 5.35% year over year.

Quarterly Segment Details

U.S.

Adjusted earnings in this segment surged 31% year over year to $653 million, attributable to the impact of U.S. tax reform. Adjusted operating premiums, fees & other revenues came in at $5.7 billion, declining 1% year over year.

Asia

Operating earnings of $327 million were up 11% year over year on reported basis, and up 7% on constant currency basis, fueled by volume growth. Operating premiums, fees & other revenues in Asia were up 4% (down 1% on a constant currency basis) to $2.2 billion, driven by transition to fee-based products.

Latin America

Operating earnings were $140 million, down 2% (down 11% at constant currency) year over year. This downside was due to the negative impact of U.S. tax reform as well as a one-time tax item in Chile. Operating premiums, fees & other revenues were $989 million, up 8% on reported and 2% on constant currency basis.

EMEA

Operating earnings from EMEA increased 8% (down 5% on constant currency basis) year over year to $81 million. Operating premiums, fees & other revenues were $679 million, up 11% reportedly and 2%, on constant currency basis.

MetLife Holdings

Operating earnings from MetLife Holdings came in at $425 million, up 10% year over year, attributable to U.S. tax reform. Operating premiums, fees & other revenues were $1.3 billion, down 12%, primarily due to Brighthouse separation-related impacts.

Corporate & Other

Corporate & other incurred an operating loss of $203 million, wider than $76 million loss in the prior-year quarter due to the negative impact of U.S. tax reform.

Financial Update

Variable investment income increased to $212 million from $177 million in the year-ago quarter, driven by lower hedge fund income.

Book value per share decreased 14% year over year to $52.49 as of Mar 31, 2018.

Adjusted tangible return on equity expanded 470 basis points to 16.4%.

Zacks Rank

MetLife carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Among other players from the insurance industry having reported first-quarter earnings so far, the bottom line of Radian Group Inc. RDN , The Hartford Financial Services Group, Inc. HIG and MGIC Investment Corporation MTG surpassed the respective Zacks Consensus Estimate.

5 Medical Stocks to Buy Now

Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.

New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.

Click here to see the 5 stocks >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Radian Group Inc. (RDN): Free Stock Analysis Report

MetLife, Inc. (MET): Free Stock Analysis Report

The Hartford Financial Services Group, Inc. (HIG): Free Stock Analysis Report

MGIC Investment Corporation (MTG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Earnings , Stocks
Referenced Symbols: RDN , MET , HIG , MTG



More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research










Research Brokers before you trade

Want to trade FX?