Metlife Stock Fair Value – MetLife Reports EPS & Revenue Misses Amidst Challenging Quarter
May 5, 2023
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METLIFE ($NYSE:MET): Both figures fell short of analyst expectations, with the EPS missing estimates by $0.34 and revenue by $720 million. The company has grown to become one of the world’s largest life insurance companies, with over $1 trillion of assets under management. In recent years, the company has continued to diversify its product offerings and expand its reach to remain competitive in the global market. It is apparent that the quarter posed several challenges for MetLife, as both their EPS and revenue fell below expected levels.
The company’s stock price fell in response to the news, as investors reacted to the disappointing earnings report. Nevertheless, it remains to be seen if MetLife will be able to rebound in the coming quarters – only time will tell.
Earnings
MetLife recently reported its earnings for the fourth quarter of FY2022, which ended on December 31 2022. The report revealed a total revenue of 16316.0M USD, with a net income of 1343.0M USD. This was an 18.8% decrease in total revenue, and a 11.5% increase in net income, compared to previous year’s figures.
Over the last 3 years, METLIFE’s total revenue dropped from 19418.0M USD to 16316.0M USD. This quarter was particularly challenging for METLIFE, with the earnings and revenue not meeting the expectations of investors.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Metlife. More…
| Total Revenues | Net Income | Net Margin |
| 68.95k | 2.35k | 3.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Metlife. More…
| Operations | Investing | Financing |
| 13.2k | -2.62k | -10.11k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Metlife. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 666.61k | 639.32k | 34.71 |
Key Ratios Snapshot
Some of the financial key ratios for Metlife are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -0.3% | – | 5.5% |
| FCF Margin | ROE | ROA |
| 19.2% | 9.1% | 0.4% |
Price History
On Wednesday, MetLife Inc. released its quarterly report, which revealed that the company had missed both its earnings per share (EPS) and revenue targets. This disappointing news caused MetLife stock to open at $59.7 and close at $58.7, down 1.2% from its last closing price of $59.4. The company revealed that despite a strong start to the quarter, they were confronted with significant headwinds that led to the poor performance. These included higher than expected costs associated with their technology investments, an unfavorable mix of variable annuity sales, and an increase in insurance-related expenses.
Going forward, MetLife remains optimistic about the future and has stated that it is committed to improving its financial performance and providing value to its shareholders. Despite the difficult quarter, the company remains confident that it is well positioned to meet its long-term goals. Live Quote…
Analysis – Metlife Stock Fair Value
GoodWhale has conducted an analysis on METLIFE’s wellbeing, and our proprietary Valuation Line has determined the intrinsic value of their share to be around $60.5. METLIFE’s stock is currently being traded at $58.7, which makes it a fair price that is slightly undervalued by 3.0%. This gives investors a great opportunity to buy into METLIFE at a discounted rate, with the potential for a return once the stock rises to its intrinsic value. MetLife_Reports_EPS__Revenue_Misses_Amidst_Challenging_Quarter”>More…
Peers
In the insurance industry, MetLife Inc faces competition from Prudential Financial Inc, Great-West Lifeco Inc, Reinsurance Group of America Inc. All of these companies are in the business of providing life insurance and related products to individuals and businesses. MetLife has a diversified product mix that includes life, disability, long-term care, and annuities, among others. Prudential is focused on life insurance and annuities, while Great-West Lifeco and Reinsurance Group of America focus primarily on life insurance.
– Prudential Financial Inc ($NYSE:PRU)
Prudential Financial Inc. is an American multinational financial services company. It offers a variety of financial products and services, including life insurance, annuities, retirement-related services, mutual funds, asset management, and real estate services. As of 2022, it has a market cap of $35.87 billion.
Prudential was founded in 1875 and is headquartered in Newark, New Jersey. It has operations in the United States, Asia, Europe, and Latin America. The company serves individual and institutional customers through its various businesses. These businesses include life insurance, annuities, retirement-related services, mutual funds, asset management, and real estate services.
– Great-West Lifeco Inc ($TSX:GWO)
Great-West Lifeco Inc is a financial services holding company with operations in the United States, Canada, Europe and Asia. The Company’s segments include Great-West Life & Annuity Insurance Company (GWL&A), London Life Insurance Company (London Life), Canada Life Insurance Company (Canada Life), Irish Life Group Limited (Irish Life) and Putnam Investments LLC (Putnam).
– Reinsurance Group of America Inc ($NYSE:RGA)
Reinsurance Group of America, Incorporated is a holding company, which engages in the provision of life reinsurance, financial services, and asset management solutions. It operates through the following segments: Traditional Life Reinsurance, Asset Intensive Life Reinsurance, Group Reinsurance, and Financial Solutions. The company was founded in 1973 and is headquartered in Chesterfield, MO.
Summary
Investors are disappointed with the recent MetLife earnings report, which revealed a Non-GAAP EPS of $1.52 that missed expectations by $0.34 and revenue of $16.12B, missing estimates by $720M. MetLife’s share price has dropped since the announcement, indicating investors’ concerns about the company’s performance. Financial analysts are watching to see how MetLife will address these issues going forward. It will be important to monitor how MetLife addresses its underlying causes of the earnings miss, whether it’s through restructuring, changes in strategy, or other measures.
Additionally, investors should keep an eye on the company’s progress in the coming quarters to gauge if the decline was an isolated incident or part of a larger trend.
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