MetLife Earnings: Here’s Why Investors are Not Very Impressed

S&P 500 (NYSE:SPY) component MetLife Inc. (NYSE:MET) reported net income above Wall Street’s expectations for the second quarter. MetLife provides individual insurance, employee benefits, and financial services.

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MetLife Inc. Earnings Cheat Sheet

Results: Net income for the insurance-multiline rose to $2.3 billion ($1.33 per share) vs. $1.09 billion ($1.13 per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 7.3% to $18.4 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: MetLife Inc. beat the mean analyst estimate of $1.26 per share. It beat the average revenue estimate of $16.67 billion.

Quoting Management: “MetLife continued to perform well in the second quarter particularly given the current environment,” said Steven A. Kandarian, chairman, president and chief executive officer of MetLife, Inc. “Our story is clear – consistent execution on the fundamentals of the business. Our underwriting discipline is paying off, our investment income and core spreads are healthy, and we’re successfully managing through the low-interest-rate environment.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the first quarter, by 7 cents in the fourth quarter of the last fiscal year, and by 3 cents in the third quarter of the last fiscal year.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the third quarter has moved down from $1.28 a share to $1.27 over the last thirty days. For the fiscal year, the average estimate has moved up from $5.13 a share to $5.20 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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