MetLife (NYSE:MET) Releases Earnings Results, Beats Expectations By $0.01 EPS

MetLife (NYSE:MET) issued its quarterly earnings results on Wednesday. The financial services provider reported $2.78 earnings per share for the quarter, beating analysts’ consensus estimates of $2.77 by $0.01, FiscalAI reports. MetLife had a net margin of 6.21% and a return on equity of 24.45%. The business had revenue of $20.52 billion during the quarter, compared to analyst estimates of $19.86 billion. During the same quarter last year, the business posted $2.34 earnings per share. MetLife’s revenue for the quarter was up 18.2% compared to the same quarter last year.

MetLife Stock Down 1.5%

MET traded down $1.50 during trading hours on Friday, hitting $98.25. 3,322,785 shares of the company’s stock were exchanged, compared to its average volume of 3,593,141. The stock has a market cap of $63.22 billion, a price-to-earnings ratio of 12.81, a PEG ratio of 0.97 and a beta of 0.79. MetLife has a 1-year low of $67.33 and a 1-year high of $106.72. The stock’s 50-day moving average is $98.11 and its two-hundred day moving average is $86.15. The company has a quick ratio of 0.20, a current ratio of 0.20 and a debt-to-equity ratio of 0.52.

MetLife Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 8th. Stockholders of record on Tuesday, November 3rd will be given a $0.5925 dividend. This represents a $2.37 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Tuesday, November 3rd. MetLife’s payout ratio is currently 30.90%.

Key Stories Impacting MetLife

Here are the key news stories impacting MetLife this week:

• Positive Sentiment: MetLife reported adjusted EPS of $2.78, narrowly above the $2.77 consensus, while revenue of $20.52 billion exceeded estimates and rose 18.2% year over year. MET Q3 Earnings Beat on Higher Investment Income, Revenues Miss
• Positive Sentiment: Group Benefits underwriting ran ahead of target, and MetLife Asia earnings increased 17%, supported by investment returns and volume growth. The company also expects full-year Retirement and Income Solutions adjusted earnings slightly above the midpoint of its $1.6–$1.8 billion outlook range. MetLife posts record adjusted EPS as group benefits underwriting runs ahead of target
• Neutral Sentiment: MetLife agreed to sell a closed-book UK life insurance business to Chesnara. The deal may simplify the portfolio, but the reports provided no financial terms to assess its likely earnings or capital impact. Chesnara buys closed-book UK life insurance business of MetLife
• Negative Sentiment: Some analysis noted that higher expenses and actuarial adjustments offset earnings gains; MetLife Asia earnings growth also came despite a dip in sales. These factors may help explain why investors have been less impressed by the headline beat. MET Q3 Earnings Beat on Higher Investment Income, Revenues Miss

MetLife declared that its Board of Directors has approved a stock buyback program on Wednesday, August 5th that allows the company to repurchase $3 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 4.8% of its shares through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Analysts Set New Price Targets

Several research firms have recently commented on MET. Atlantic Securities set a $103.00 target price on MetLife in a research note on Wednesday, July 15th. UBS Group raised their target price on shares of MetLife from $105.00 to $110.00 and gave the company a “buy” rating in a research note on Tuesday, October 6th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of MetLife in a research note on Friday, September 11th. Barclays raised their price objective on MetLife from $97.00 to $111.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 7th. Finally, Bank of America reduced their price target on shares of MetLife from $106.00 to $103.00 and set a “buy” rating for the company in a report on Wednesday, July 15th. Thirteen equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $105.44.

MetLife Company Profile

MetLife, Inc is a global financial services company best known for providing insurance, employee benefits and retirement-related products. Its offerings include life, dental and disability insurance, annuities, and products and services designed to help individuals and employers plan for financial protection and retirement.

The company serves individuals, businesses and institutions in the United States and international markets, including countries in Latin America, Asia, Europe and the Middle East.