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Market Overview

MetLife's Earnings: A Preview

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MetLife (NYSE:MET) releases its next round of earnings this Wednesday, February 03. Get the latest predictions in Benzinga's essential guide to the company's Q4 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict MetLife will report earnings of $1.52 per share on revenue of $16.34 billion. MetLife reported a profit of $1.98 per share when it published results during the same quarter last year. Sales in that period totaled $18.15 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Wednesday, earnings would be down 23.23%. Sales would be down 9.99% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 1.61 0.90 1.43 1.37
EPS Actual 1.95 0.83 1.58 1.98
Revenue Estimate 16.00 B 15.08 B 16.29 B 16.82 B
Revenue Actual 16.51 B 13.85 B 15.54 B 18.15 B

Stock Performance

Shares of MetLife were trading at $48.485 as of February 01. Over the last 52-week period, shares are down 5.36%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. MetLife is scheduled to hold the call at 09:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings