Lincoln National Corp Earnings Cheat Sheet: Profit Falls, Snapping Streak of Rising Profits

S&P 500 (NYSE:SPY) component Lincoln National Corporation (NYSE:LNC) reported a lower net income in third quarter. Lincoln National offers a range of wealth protection, accumulation, and retirement income products and solutions through its multiple insurance and investment management businesses.

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Lincoln National Earnings Cheat Sheet for the Third Quarter

Results: Net income for Lincoln National Corporation fell to $143 million (44 cents per share) vs. $246 million (75 cents per share) a year earlier. This is a decline of 41.9% from the year earlier quarter.

Revenue: Revenue was $2.55 billion last quarter.

Actual vs. Wall St. Expectations: LNC reported income from operations of $1.00 per share. By this measure, it beat the mean analyst estimate of 93 cents per share. It fell short of the average revenue estimate of $2.76 billion.

Quoting Management: “Our operating results were very strong while volatile markets negatively impacted net income,” said President & CEO Dennis R. Glass. “Investments in our Group Protection and Defined Contribution businesses supported higher sales, improving loss ratios and positive net flows. We focused on driving top line growth, taking pricing actions to increase returns, enhancing risk management and returning capital to shareholders.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the second quarter, net income rose 27.5% from the year earlier, while the figure increased 19.8% in the first quarter, 91.2% in the fourth quarter of the last fiscal year and 60.8% in the third quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from 99 cents per share to 91 cents. Over the past three months, the average estimate for the fiscal year has climbed from $3.99 per to share to $4.07.

Competitors to Watch: National Western Life Insurance Co. (NASDAQ:NWLI), MetLife, Inc. (NYSE:MET), AEGON N.V. (NYSE:AEG), CNO Financial Group, Inc. (NYSE:CNO), Kansas City Life Insurance Co (NASDAQ:KCLI), Torchmark Corporation (NYSE:TMK), Presidential Life Corp (NASDAQ:PLFE), StanCorp Financial Group, Inc. (NYSE:SFG), Prudential Financial, Inc. (NYSE:PRU), and Independence Holding Co. (NYSE:IHC).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)

 

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