MetLife Earnings: Here’s Why Investors are Not Excited Now

MetLife, Inc. (NYSE:MET) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.07%.

MetLife, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 5.3% to $1.25 in the quarter versus EPS of $1.31 in the year-earlier quarter.

Revenue: Rose 9.64% to $18.36 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: MetLife, Inc. reported adjusted EPS income of $1.25 per share. By that measure, the company beat the mean analyst estimate of $1.18. It beat the average revenue estimate of $17.25 billion.

Quoting Management: “In 2012, we grew operating earnings 22% over 2011 and achieved an operating ROE of 11.3% in the face of several economic challenges,” said Steven A. Kandarian, chairman, president and chief executive officer of MetLife, Inc. “We are executing on our strategy, including shifting our business mix toward less capital-intensive products. We’re also growing our presence in emerging markets with our recent agreement to acquire AFP Provida in Chile, as well as our expansion in Central Europe, Turkey and India. Moving ahead, we will continue to take actions that create value for MetLife’s shareholders.”

Key Stats (on next page)…

Revenue increased 11.25% from $16.5 billion in the previous quarter. EPS decreased 5.3% from $1.32 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.35 to a profit $1.3. For the current year, the average estimate has moved down from a profit of $5.27 to a profit of $5.21 over the last ninety days.

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