Lincoln National Earnings: Here’s Why Shares are Down Now

Lincoln National Corp. (NYSE:LNC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 2.03%.

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Lincoln National Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 2% to $1.02 in the quarter versus EPS of $1.00 in the year-earlier quarter.

Revenue: Rose 4.79% to $2.84 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lincoln National Corp. reported adjusted EPS income of $1.02 per share. By that measure, the company missed the mean analyst estimate of $1.1. It missed the average revenue estimate of $2.95 billion.

Quoting Management: “Results in the quarter continued to reflect the successful execution of our product strategy as our distribution strength led to sales growth across all businesses,” said Dennis R. Glass, president and CEO of Lincoln Financial Group. “Although overall earnings were reduced by fluctuations in mortality and alternative investment income, our topline fundamentals and expense discipline remain strong, supplemented by continued active capital management.”

Key Stats (on next page)…

Revenue decreased 4.05% from $2.96 billion in the previous quarter. EPS decreased 7.27% from $1.10 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.11 to a profit $1.14. For the current year, the average estimate has moved up from a profit of $4.46 to a profit of $4.56 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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