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MetLife Second Quarter Earnings Preview
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In the lead up to MetLife's (NYSE:MET) announcement of its second quarter earnings on Wednesday, August 1, 2012 analysts' expectations have fallen over the past month to earnings of $1.25 per share from earnings of $1.27 per share.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: How To Decode A Company's Earnings Reports
What to Expect: MetLife is expected to report $1.25 per share, up 0.8% from a year ago when the company reported earnings of $1.24 per share.
The consensus estimate is down from three months ago when it was $1.26. For the fiscal year, analysts are expecting earnings of $5.18 per share.
MetLife's expected revenue of $16.98 billion for the quarter is below last year's reported figure of $17.15 billion by 1%. For the fiscal year, expected revenue is $67.81 billion.
Company Performance: Revenue for MetLife has been on the rise for four consecutive quarters. It increased 4.9% to $16.69 billion in the first quarter. Prior to that, the figure rose 30.4% in the fourth quarter of the last fiscal year, 64.4% in the third quarter of the last fiscal year and 20.4% in the second quarter of the last fiscal year.
MET's P/E ratio of 5.4 is under the industry average of 8.71. A low P/E might arise due to substantial inherent risk of the firm and its operations, poor return on equity, or improper valuation of the market. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock
The stock price has fallen 18.6% since April 30, 2012, from $36.03 to $29.34. July 18, 2012 to July 25, 2012 marked one of MetLife's worst periods, as the share price fell $2.32.
The Competition: MetLife provides individual insurance, employee benefits, and financial services. Sixteen of 19 analysts give MetLife a buy rating. The rating has remained steadfast for the past three months.
The company's closest competitor in the insurance (life) industry is Prudential Public Limited (PUK). Analysts are more optimistic about MetLife than about Prudential Public Limited. Only three out of four analysts rate the latter a buy.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: How To Decode A Company's Earnings Reports
What to Expect: MetLife is expected to report $1.25 per share, up 0.8% from a year ago when the company reported earnings of $1.24 per share.
The consensus estimate is down from three months ago when it was $1.26. For the fiscal year, analysts are expecting earnings of $5.18 per share.
MetLife's expected revenue of $16.98 billion for the quarter is below last year's reported figure of $17.15 billion by 1%. For the fiscal year, expected revenue is $67.81 billion.
Company Performance: Revenue for MetLife has been on the rise for four consecutive quarters. It increased 4.9% to $16.69 billion in the first quarter. Prior to that, the figure rose 30.4% in the fourth quarter of the last fiscal year, 64.4% in the third quarter of the last fiscal year and 20.4% in the second quarter of the last fiscal year.
The stock price has fallen 18.6% since April 30, 2012, from $36.03 to $29.34. July 18, 2012 to July 25, 2012 marked one of MetLife's worst periods, as the share price fell $2.32.
The Competition: MetLife provides individual insurance, employee benefits, and financial services. Sixteen of 19 analysts give MetLife a buy rating. The rating has remained steadfast for the past three months.
The company's closest competitor in the insurance (life) industry is Prudential Public Limited (PUK). Analysts are more optimistic about MetLife than about Prudential Public Limited. Only three out of four analysts rate the latter a buy.
by
Investopedia Staff
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