What's in Store for Lincoln National (LNC) in Q2 Earnings?

Shutterstock photo

Lincoln National Corp. LNC is scheduled to report second-quarter 2018 results on Aug 1, after market close.

The company's Retirement Plan Services segment earnings are likely to increase, driven by consistent growth in deposits, net flows and assets, Its strategy and franchise are expected to drive results.

We expect an increase in total Life Insurance sales in the second quarter on the back of higher sales of Variable Universal Life and term products, combined with continued strong demand for MoneyGuard. Moreover, a favorable macro backdrop allows the company to improve its competitive position in Universal Life and Individual Universal Life. This will aid sales diversification and growth.

The company's Life business got off to a great start this year and the company's outlook for the business remains strong. It expects growth to continue, driven by further product diversification and depth and breadth of the company's distribution.

In the company's Annuities business, we expect higher sales of both fixed and variable annuities, led by strategies to restore annuity sales by combining product actions and distribution effectiveness. New business is expected to grow on the back of an index variable annuity product introduced in the second quarter.

In order to fund the acquisition of Liberty's Group Benefits business, the company did not buy back any shares in the second quarter. The bottom line, therefore, will be bereft of the accretion from share buybacks.

Earnings Surprise

The company boasts an attractive earnings surprise history. It beat estimates in each of the trailing four quarters, delivering an average positive surprise of 5.22%.

Lincoln National Corporation Price and EPS Surprise

Lincoln National Corporation Price and EPS Surprise | Lincoln National Corporation Quote

Here is What our Quantitative Model Predicts

Our proven model does not conclusively show that Lincoln National is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP   and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.

Earnings ESP: Lincoln National has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Zacks Rank: Lincoln National carries a Zacks Rank #2, which increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.

Stocks That Warrant a Look

Here are some companies that you may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

American Financial Group, Inc. AFG is expected to report second-quarter 2018 results on Aug 1. The company has an Earnings ESP of +1.68% and a Zacks Rank #2. 

You can see  the complete list of today's Zacks #1 Rank stocks here .

XL Group Ltd. XL is expected to report second-quarter 2018 earnings on Jul 31. The company has an Earnings ESP of +6.37% and a Zacks Rank #3.

NMI Holdings Inc. NMIH has an Earnings ESP of +1.54% and a Zacks Rank #1. The company is expected to report second-quarter earnings on Aug 1.

Wall Street's Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It's a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

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

Lincoln National Corporation (LNC): Free Stock Analysis Report

XL Group Ltd. (XL): Free Stock Analysis Report

American Financial Group, Inc. (AFG): Free Stock Analysis Report

NMI Holdings Inc (NMIH): 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: LNC , AFG , NMIH

More from Zacks.com




Equity Research

Research Brokers before you trade

Want to trade FX?