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Valued at a market cap of $9.6 billion, Globe Life Inc. (GL) is a financial services holding company that provides various life and supplemental health insurance products and annuities, primarily to lower-middle and middle-income families. The McKinney, Texas-based company is expected to announce its fiscal Q3 earnings results on Wednesday, Oct. 23.
Ahead of this event, analysts expect the insurance company to report a profit of $3.04 per share, up 12.2% from $2.71 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion.
Its earnings of $2.97 per share for the last quarter outpaced the consensus estimates by 2.4%. Higher life insurance premiums and operational efficiency drove Globe Life's earnings beat.
For fiscal 2024, analysts expect GL to report an EPS of $11.94, an increase of 12.1% from $10.65 in fiscal 2023.
Shares of Globe Life have declined 13.8% on a YTD basis, significantly lagging behind both the S&P 500 Index's ($SPX) 20.2% surge and the Financial Select Sector SPDR Fund’s (XLF) 20.7% returns over the same period.
On Apr. 11, shares of GL plunged more than 50% after short seller Fuzzy Panda Research accused the company of extensive insurance fraud that management ignored. The short seller claimed that the insurance company’s management knew but ignored malpractices such as writing policies for deceased and fictitious individuals, among other things happening in the company. However, the company’s shares bounced back around 20% the next day.
The stock closed up marginally after its Q2 earnings release on Jul. 24. The company’s revenue of $1.4 billion matched the consensus estimates, and its adjusted earnings of $2.97 increased 14% year-over-year.
Analysts' consensus view on Globe Life’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 10 analysts covering the stock, five recommend a "Strong Buy," one suggests "Moderate Buy," and four indicate “Hold.” GL’s average analyst price target is $111.10, indicating a 4.3% potential upside from the current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
