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New York-based MetLife, Inc. (MET) is a global financial services company, specializing in insurance, annuities, employee benefits, and asset management. With a market cap of $60.7 billion, it offers a diverse range of protection and investment products to both individual and institutional customers. The company is set to unveil its fiscal Q3 earnings results after the market closes on Wednesday, Oct. 30.
Ahead of this event, analysts expect the insurer to report a profit of $2.16 per share, up 9.6% from $1.97 per share in the year-ago quarter. The company has surpassed or met Wall Street's bottom-line estimates in two of the past four quarters while missing on two other occasions. In the most recent quarter, the company exceeded the consensus EPS estimate by a 7% margin due to strong performance in its group benefits unit.
For fiscal 2024, analysts expect MET to report EPS of $8.58, up 17.1% from $7.33 in fiscal 2023.
MET has outperformed the broader markets in 2024, with shares up 28.3%, compared to the S&P 500 Index's ($SPX) 22.7% gain and the Financial Select Sector SPDR Fund's (XLF) 25.6% return on a YTD basis.
Despite reporting better-than-expected Q2 adjusted revenue of $18.7 billion and EPS of $2.28 on Jul. 31, shares of MetLife fell 1.4% the next day due to flat premiums, fees, and other revenues, which were stagnant compared to the prior year. The Retirement and Income Solutions (RIS) segment saw a decline in earnings due to lower recurring interest margins. Additionally, the MetLife Holdings segment experienced a sharp 27% earnings decline, mainly due to a reinsurance transaction, further weighing on investor sentiment.
Analysts' consensus rating on MET stock is bullish, with a "Strong Buy" rating overall. Out of 16 analysts covering the stock, opinions include 11 "Strong Buys,” two "Moderate Buys," and three "Holds.” This configuration is more bullish than three months ago, with nine analysts suggesting a "Strong Buy." The average analyst price target for MET is $90.36, suggesting a potential upside of only 6.5% from current levels.
On the date of publication, Sohini Mondal 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.
