Manulife Financial (NYSE:MFC) Stock, Quote.Headers.trade-ideas

Manulife Financial

Manulife Financial provides life insurance, annuities, and asset management products to individuals and group customers in Canada, the United States, and Asia. Its investment management business contributes approximately 20% of its earnings and has around CAD 1.05 trillion in assets under management and administration as of the end of 2023. The US business, which primarily operates under the John Hancock brand, contributes about 27% of earnings and is mainly focused on providing insurance products for estate, business, and income protection. The Asia segment provides insurance products and insurance-based wealth accumulation products in over 11 countries and contributes around 30% of earnings. The Canadian business segment contributes approximately 23% of earnings.

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Shares of Manulife Financial Corporation (NYSE: MFC) closed at $28.87 on Thursday, near its 52-week high of $28.89. A strong-performing Asia business, expanding Wealth and Asset Management business and a solid capital position are driving the stock price higher.

MFC Stock Near 52-Week High: Should You Buy or Wait for a Pullback?

Earnings Beats

VOYA

Manulife Financial Corporation (NYSE: MFC) delivered second-quarter 2024 core earnings of 66 cents per share, which beat the Zacks Consensus Estimate by 3.1%. The bottom line improved 6.4% year over year.

Manulife Q2 Earnings Beat Estimates, NBV Sales Rise Y/Y

Reinsurance Group of America, Incorporated&#39;s (NYSE: RGA) shares have rallied 43.3% in a year compared with the industry&#39;s growth of 30.7%. The Finance sector and the Zacks S&amp;P 500 index have gained 26.1% and 27.7% in the said time frame, respectively.

Reinsurance Group (RGA) Up 43.3% in a Year: More Room to Run?

Manulife Financial Corporation Common Stock

Manulife Financial Corp

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Earnings Scheduled For February 19, 2025

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Manulife has been notified of an unsolicited mini-tender offer made by New York Stock and Bond LLC (New York Stock and Bond) to purchase up to 50,000 Manulife common shares, or less than 0.003% of the common shares outstanding, at a price of USD$12.50 per share.
&nbsp;
Manulife is in no way associated with New York Stock and Bond and does not recommend or endorse acceptance of this unsolicited offer.
Manulife cautions shareholders that the mini-tender offer has been made at a price below the current market price for Manulife shares. The offer represents a discount of approximately 60.76%&nbsp;and 60.80%, respectively, below the closing prices of Manulife common shares on the TSX and NYSE on November 27, 2024, the last trading day before the mini-tender offer was commenced, and a discount of 61.43% and 61.42%, respectively,&nbsp;below the closing prices on the TSX and NYSE on December 6, 2024.
Mini-tender offers are designed to seek less than 5% of a company's outstanding shares, avoiding disclosure and procedural requirements applicable to most bids under Canadian and U.S. securities regulations. The Canadian Securities Administrators (CSA) and the U.S. Securities and Exchange Commission (SEC) have expressed serious concerns about mini-tender offers, including the possibility that investors might tender to such offers without understanding the offer price relative to the actual market price of their securities.

Management

Manulife Has Been Notified Of An Unsolicited Mini-Tender Offer Made By New York Stock And Bond LLC To Purchase Up To 50K Manulife Common Shares At A Price Of $12.50 Per Share; Manulife Cautions Shareholders That The Mini-Tender Offer Has Been Made At A Price Below The Current Market Price For Manulife Shares

RBC Capital analyst Darko Mihelic reiterates Manulife Financial (TSX:<a class="ticker" href="https://www.benzinga.com/stock/MFC#TSX">MFC</a>) with a Outperform and maintains C$49 price target.

Price Target

Reiteration

TSX:MFC

RBC Capital Reiterates Outperform on Manulife Financial, Maintains C$49 Price Target

To support this transition, following Gori's retirement he has agreed to serve as an Advisor through August 31, 2025.

Manulife Financial President And CEO Roy Gori Intends To Retire, Effective May 8, 2025, With Phil Witherington Appointed As His Successor

Manulife Financial shares are trading higher after the company reported better-than-expected Q3 adjusted EPS, with sales in line with estimates.

Manulife Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MFC#NYSE">MFC</a>) reported quarterly earnings of $0.73 per share which beat the analyst consensus estimate of $0.67 by 8.96 percent. This is a 6.41 percent increase over earnings of $0.69 per share from the same period last year. The company reported quarterly sales of $1.51 billion which met the analyst consensus estimate. This is a 13.32 percent increase over sales of $1.33 billion the same period last year.

Manulife Financial Q3 Adj $0.73 Beats $0.67 Estimate, Sales $1.51B Inline

Manulife Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MFC#NYSE">MFC</a>) reported quarterly earnings of $1.00 per share which beat the analyst consensus estimate of $0.94 by 6.38 percent. The company reported $1.800 billion in sales this quarter. This is a 35.44 percent increase over sales of $1.329 billion the same period last year.

Manulife Financial Q3 2024 Adj. EPS $1.00 Beats $0.94 Estimate, Sales $1.800B Up From $1.329B YoY

Manulife Financial (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MFC#NYSE">MFC</a>) will release its quarterly earnings report on Wednesday, 2024-11-06. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Manulife Financial to report an earnings per share (EPS) of $0.67.
The announcement from Manulife Financial is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.
It's worth noting for new investors that guidance can be a key determinant of stock price movements.
<h3>Overview of Past Earnings</h3>
During the last quarter, the company reported an EPS beat by $0.02, leading to a 2.57% increase in the share price on the subsequent day.
Here's a look at Manulife Financial's past performance and the resulting price change:

<table>
<thead>
<tr>
<th>Quarter</th>
<th>Q2 2024</th>
<th>Q1 2024</th>
<th>Q4 2023</th>
<th>Q3 2023</th>
</tr>
</thead>
<tbody>
<tr>
<td>EPS Estimate</td>
<td>0.65</td>
<td>0.67</td>
<td>0.63</td>
<td>0.610</td>
</tr>
<tr>
<td>EPS Actual</td>
<td>0.67</td>
<td>0.70</td>
<td>0.68</td>
<td>0.686</td>
</tr>
<tr>
<td>Price Change %</td>
<td>3.0%</td>
<td>5.0%</td>
<td>10.0%</td>
<td>3.0%</td>
</tr>
</tbody>
</table>

<img src="https://www.benzinga.com/files/images/story/2024/1730836926_0_0.png" alt="eps graph" />
<h3>Market Performance of Manulife Financial's Stock</h3>
Shares of Manulife Financial were trading at $29.7 as of November 04. Over the last 52-week period, shares are up 66.34%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release. 
<a href="https://www.benzinga.com/quote/MFC/earnings">To track all earnings releases for Manulife Financial visit their earnings calendar on our site.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

What's Next: Manulife Financial's Earnings Preview

Shares of Manulife Financial Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mfc#NYSE">MFC</a>) closed at $28.87 on Thursday, near its 52-week high of $28.89. A strong-performing Asia business, expanding Wealth and Asset Management business and a solid capital position are driving the stock price higher.
The company is one of the three dominant life insurers within its domestic Canadian market and possesses rapidly growing operations in the United States and several Asian countries. Earnings grew 4.9% in the last five years, better than the industry average of 4.6%.
Shares have rallied 30.6% year to date, outperforming the industry&#39;s increase of 19%, the Finance sector&#39;s increase of 13.7% and the S&amp;P 500 composite&#39;s rise of 17.7%.
<h2>MFC Outperforms Industry, Sector, S&amp;P 500 YTD</h2>
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/d1/78668.jpg?v=2085214265" />
Image Source: Zacks Investment Research
MFC shares are trading well above the 50-day moving average, indicating a bullish trend.
<h2>MFC&#39;s Return on Equity</h2>
Manulife&#39;s return on equity (ROE) for the trailing 12 months is 16.2%, better than the industry average of 15.5%. This reflects Manulife&#39;s efficiency in utilizing shareholders&#39; funds. It expects to generate a ROE of more than 18% by 2027.
<h2>Optimistic Growth Outlook</h2>
The Zacks Consensus Estimate for 2024 and 2025 earnings per share is pegged at $2.72 and $2.86, respectively, suggesting an increase of 5.8% and 5.2% year over year. The long-term earnings growth rate is currently pegged at 10%. Manulife expects core EPS growth of 10-12% over the medium term.&nbsp;
<h2>Factors Favoring MFC</h2>
Manulife&#39;s Asia business continues to be a major contributor to earnings. Asia has been the fastest-growing insurance segment, supported by strong volume growth and attractive margins. This market appears attractive, given its changing demographics. MFC now expects core earnings from Asia to contribute 50% to overall earnings by 2027.
As part of its strategic priorities, Manulife is also investing in high ROE and growth segments in North America.&nbsp; The company&#39;s highest potential businesses, including operations in Asia, Global WAM, Canada group benefits and behavioral insurance products, currently contribute two-thirds to core earnings. The insurer now looks to increase it to 75% and thus is expediting growth in these highest potential businesses.
In tandem with the wave of digitalization going on, MFC is digitalizing and automating workflows through GenAI and advanced analytics.&nbsp; Accelerated digitalization should help it achieve an expense efficiency ratio of less than 45% in the medium term.
Manulife has been strengthening its balance sheet by improving liquidity and leverage. It targets a leverage ratio of 25%. Notably, its free cash flow conversion has remained more than 100% over the last many quarters, reflecting its solid earnings.
The life insurer, banking on consistent cash flow, hiked dividends at a six-year CAGR of 10% and targets a 35-45% dividend payout over the medium term.
<h2>Concerns Regarding MFC</h2>
Despite the upside potential, there are a few factors that investors should keep an eye on.
Manulife targeted an expense efficiency ratio of less than 50% or $1 billion in cost savings and avoidance.&nbsp; It is on track to deliver an efficiency ratio of less than 45% in the future. However, its net margin has been contracting over the last six quarters.
Manulife draws a substantial portion of its earnings from the international market, which makes its profitability vulnerable to foreign exchange losses. In an attempt to lower its forex exposure, the company has started incurring hedging costs.
Though the leverage has been gradually improving, times interest earned has been declining.
The return on invested capital in the trailing 12 months was 0.66%, comparing unfavorably with the industry average of 0.68%, reflecting the insurer&#39;s inefficiency in utilizing funds to generate income.
<h2>MFC Shares Expensive&nbsp;</h2>
MFC shares are trading at a price-to-earnings multiple of 10.23, higher than the industry average of 8.40.
Shares of other insurers like Sun Life Financial&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slf#NYSE">SLF</a>) and Aflac Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/afl#NYSE">AFL</a>) are trading at a multiple higher than the industry average.
<h2>Parting Thoughts</h2>
MFC&#39;s focus on building a high-growth, high-return and high cash generation company, wealth distribution to shareholders and ROE expansion instills confidence in this Zacks Rank #3 (Hold) insurer.
However, given the stock&#39;s premium valuation, it will be wise for new investors to wait for a better entry point.
Investors who already hold MFC stock should retain it, given its growth prospects.
<a href="https://www.zacks.com/stock/news/2339314/mfc-stock-near-52-week-high-should-you-buy-or-wait-for-a-pullback?cid=CS-BENZ-FT-analyst_blog|rank_focused-2339314">To read this article on Zacks.com click here.</a>

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Shares of companies within the broader financial sector are trading higher amid overall market strength following Fed Chair Powell's comments about the economy and future rate cuts.

RBC Capital analyst Darko Mihelic maintains Manulife Financial (TSX:<a class="ticker" href="https://www.benzinga.com/stock/MFC#TSX">MFC</a>) with a Outperform and raises the price target from C$38 to C$39.

RBC Capital Maintains Outperform on Manulife Financial, Raises Price Target to C$39

Manulife Financial Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mfc#NYSE">MFC</a>) delivered second-quarter 2024 core earnings of 66 cents per share, which beat the Zacks Consensus Estimate by 3.1%. The bottom line improved 6.4% year over year.
<div class="chart_embed">
Manulife Financial Corp Price, Consensus and EPS Surprise
<img alt="Manulife Financial Corp Price, Consensus and EPS Surprise" src="https://staticx-tuner.zacks.com/images/charts/52/1723120916.png" style="height:265px; width:577px" title="" />
Manulife Financial Corp price-consensus-eps-surprise-chart | Manulife Financial Corp Quote
Core earnings of $1.3 billion (C$1.7 billion) increased 8.3% year over year. The improvement was driven by continued business growth momentum and updates to actuarial methods and assumptions in the second half of 2023, higher fee income from favorable market impacts and positive net flows, a favorable tax true-up, strong growth in Group Insurance and favorable net insurance experience.
New business value (NBV) in the reported quarter was $528 million (C$723 million), up 21.4% year over year.
New business contractual service margin of $459 million (C$628 million) rose 4.1% year over year.
Annualized premium equivalent (APE) sales increased 16.7% year over year to $1.4 billion (C$1.9 billion), attributable to higher sales in Asia and Canada.
The expense efficiency ratio increased 30 basis points (bps) to 45.4%. The increase reflects a rise of 6% and 7% in pre-tax core earnings and core expenses, respectively.
Wealth and asset management assets under management and administration were $682 billion (C$933.1 billion), up 10.3% year over year. 
Retail net outflows of $0.1 billion remained unchanged year over year, as increased demand for investment products amid equity market recovery and improved investor sentiment was offset by higher redemptions.
Core return on equity, measuring the company&#39;s profitability, expanded 20 bps year over year to 15.7%. The financial leverage ratio deteriorated 120 basis points to 24.6% at the end of the quarter.
Life Insurance Capital Adequacy Test ratio was 139% as of Jun 30, 2024, up from 136% reported in the year-ago quarter.
Adjusted book value per common share was $33.96, up 15% year over year.
</div>
<h3>Segmental Performance</h3>
Global Wealth and Asset Management division&#39;s core earnings came in at $291.6 million (C$399 million), up 22.5% year over year.
Asia division&#39;s core earnings totaled $472 million, up 40% year over year. NBV, APE sales and new business CSM increased 19%, 7% and 10%, respectively, year over year, reflecting higher sales volumes in Japan and Hong Kong.
Manulife Financial&#39;s Canada division&#39;s core earnings of $294 million (C$402 million) were up 6.1% year over year. APE sales and NBV increased 61% and 50%, respectively, driven by higher sales volumes in all business units, led by a large-case Group Insurance sale. New business CSM grew 33%, driven by margin expansion in Individual Insurance and higher sales volumes in segregated fund products.
The U.S. division reported core earnings of $303 million, down 11% year over year. APE sales decreased 4% year over year with a shift in product mix, while NBV grew 3%. New business CSM decreased 30% due to a change in product mix and the impact of higher interest rates.
<h3>Zacks Rank</h3>
Manulife Financial currently carries a Zacks Rank #4 (Sell).
<h3>Performance of Other Life Insurers</h3>
Voya Financial, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/voya#NYSE">VOYA</a>) reported second-quarter 2024 adjusted operating earnings of $2.27 per share, which beat the Zacks Consensus Estimate by 3.6%. The bottom line, however, decreased 1.7% year over year. Adjusted operating revenues amounted to $324 million, down 6.6% year over year. The top line missed the Zacks Consensus Estimate by 0.4%.
Net investment income declined 5% year over year to $518 million. Premiums totaled $790 million, up 16.7% from the year-ago quarter. As of Jun 30, 2024, VOYA&#39;s assets under management, assets under administration and advisement totaled $861.3 billion.
Lincoln National Corporation&#39;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lnc#NYSE">LNC</a>) second-quarter 2024 adjusted earnings of $1.84 per share beat the Zacks Consensus Estimate by 3.4%. However, the bottom line declined 8.9% year over year. Adjusted operating revenues of $4.5 billion dropped 4.3% year over year in the quarter under review. The top line lagged the consensus mark by 2.7%.
Fee income declined 1.9% year over year to $1.3 billion, which missed the Zacks Consensus Estimate by 2.1%. Insurance premiums of $1.6 billion rose 0.8% year over year. The metric beat the consensus mark by 0.7%. Net investment income of $1.3 billion dipped 11.7% year over year and missed the consensus mark by 1.7%. Meanwhile, other revenues fell 5.9% year over year.
Reinsurance Group of America, Incorporated (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rga#NYSE">RGA</a>) reported second-quarter 2024 adjusted operating earnings of $5.48 per share, which beat the Zacks Consensus Estimate by 10.9%. The bottom line increased 24.5% from the year-ago quarter. Net foreign currency fluctuations had a favorable effect of 6 cents per share on adjusted operating income compared with the prior year. RGA&#39;s operating revenues of $5.1 billion improved 20.3% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues. It beat the consensus estimate by 4.7%.
Net premiums of $3.9 billion jumped 17.5% year over year. Investment income and net of related expenses increased 26.3% from the prior-year quarter to $1.1 billion. The average investment yield increased 23 basis points to 4.65%, primarily due to higher new money rates. Total benefits and expenses at Reinsurance Group climbed 18.5% year over year to $4.6 billion.
<a href="https://www.zacks.com/stock/news/2319430/manulife-mfc-q2-earnings-beat-estimates-nbv-sales-rise-y-y?cid=CS-BENZ-FT-analyst_blog|earnings_article-2319430">To read this article on Zacks.com click here.</a>

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TD Securities analyst Mario Mendonca maintains Manulife Financial (TSX:<a class="ticker" href="https://www.benzinga.com/stock/MFC#TSX">MFC</a>) with a Buy and raises the price target from C$38 to C$40.

TD Securities Maintains Buy on Manulife Financial, Raises Price Target to C$40

Manulife Investment Management Announces Strategic Partnership With Foundry Commercial To Acquire, Develop, And Lease Industrial Outdoor Storage Sites In Key Infill Industrial Markets Throughout The Southeast; Portfolio Includes 10 Sites In Atlanta, Nashville, Dallas-Fort Worth, And Jacksonville

Insurance

Press Releases

Manulife Investment Management Announces Final 2024 Cash Distributions for Manulife Exchange Traded Funds and ETF Series of Manulife Funds

Manulife Closes LTC Reinsurance Transaction with RGA

Manulife Investment Management Welcomes Ryan Hanna as Global Chief Operating Officer, Private Markets

Mutual Funds

Manulife Investment Management Announces January 2025 Cash Distributions for Manulife Exchange Traded Funds and ETF Series of Manulife Funds

Commodities

Manulife Investment Management Announces Close of $480 million Forest Climate Fund

Manulife to Release Fourth Quarter and Full Year 2024 Results

Manulife Financial Corporation announces Conversion Privilege of Non-cumulative Rate Reset Class 1 Shares Series 19

Manulife Investment Management Recognized Again by Fundata Canada with 34 Funds Receiving Awards for Risk-Adjusted Performance

Manulife Investment Management Limited Announces Changes to Fund Platform

Manulife Financial Corporation announces Dividend Rates on Non-cumulative Rate Reset Class 1 Shares Series 19 and Non-cumulative Floating Rate Class 1 Shares Series 20

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