Manulife Financial (NYSE:MFC) Releases Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• Manulife reported quarterly EPS of $0.89, beating the $0.83 consensus, and revenue of $8.78 billion, above estimates of $7.67 billion. EPS was below the $1.16 reported in the same quarter a year earlier.
• The company declared a quarterly dividend of C$0.48 per share, equivalent to an annualized yield of about 4.4% according to the article.
• Analysts’ average rating was “Buy,” with an average price target of $58.75.

Manulife Financial (NYSE:MFC - Get Free Report) TSE: MFC issued its quarterly earnings results on Wednesday. The financial services provider reported $0.89 EPS for the quarter, topping analysts' consensus estimates of $0.83 by $0.06, Zacks reports. Manulife Financial had a return on equity of 16.68% and a net margin of 9.99%. The company had revenue of $8.78 billion during the quarter, compared to analyst estimates of $7.67 billion. During the same period in the previous year, the company earned $1.16 earnings per share.

Manulife Financial Price Performance

Shares of MFC traded down $2.06 on Thursday, reaching $43.93. 2,254,519 shares of the stock traded hands, compared to its average volume of 2,131,708. The stock's 50-day moving average price is $43.74 and its 200-day moving average price is $40.09. The firm has a market cap of $72.68 billion, a price-to-earnings ratio of 16.39 and a beta of 0.86. Manulife Financial has a 12 month low of $32.58 and a 12 month high of $46.19.

Manulife Financial Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 21st. Stockholders of record on Friday, November 20th will be given a dividend of C$0.48 per share. The ex-dividend date is Friday, November 20th. This represents a $1.94 dividend on an annualized basis and a dividend yield of 4.4%. Manulife Financial's payout ratio is currently 51.49%.

More Manulife Financial News

Here are the key news stories impacting Manulife Financial this week:

• Positive Sentiment: Manulife reported quarterly EPS of $0.89, ahead of the $0.83 consensus, and revenue of $8.78 billion versus the $7.67 billion estimate. Core earnings rose 4% year over year to a record, according to one report. Article: Manulife Financial Q3 Earnings and Revenues Top Estimates
• Positive Sentiment: The company announced a quarterly dividend of C$0.48 per share, equivalent to an indicated annualized yield of about 4.2%. The dividend provides ongoing income support for shareholders.
• Positive Sentiment: Manulife reported another tranche under its existing equity buyback plan. Repurchases can support demand for shares, although the update provided here does not specify the tranche size. Article: Tranche Update on Manulife’s Equity Buyback Plan
• Neutral Sentiment: Coverage was inconsistent about net income: one report said Q3 net earnings increased 6% year over year, while another reported profit fell 22%. The distinction between measures makes the underlying comparison less clear. Article: Manulife Financial Q3 Net Earnings Climbs 6% YoY, Beats Forecast Article: Manulife Q3 Profit Falls 22%; Core Earnings Rise 4%
• Negative Sentiment: Despite beating estimates, EPS was below the $1.16 reported in the prior-year quarter in the supplied earnings data, which may concern investors focused on reported year-over-year results.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on MFC. BMO Capital Markets reaffirmed an "outperform" rating on shares of Manulife Financial in a research report on Friday, August 7th. Zacks Research raised shares of Manulife Financial from a "strong sell" rating to a "hold" rating in a report on Wednesday, September 2nd. Weiss Ratings upgraded shares of Manulife Financial from a "buy (a)" rating to a "buy (a+)" rating in a research report on Thursday, October 8th. TD Securities restated a "buy" rating on shares of Manulife Financial in a research report on Thursday, August 6th. Finally, Scotiabank downgraded shares of Manulife Financial from a "sector outperform" rating to a "sector perform" rating in a report on Tuesday, October 27th. Two research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $58.75.

About Manulife Financial

Manulife Financial Corporation is a Canadian financial services company headquartered in Toronto, Ontario. Founded in 1887 as The Manufacturers Life Insurance Company, Manulife has grown into a diversified provider of insurance, wealth and asset management, and retirement solutions. Its common shares trade on the New York Stock Exchange under the symbol MFC.

Manulife offers life, health, and property and casualty insurance, along with retirement products, investment solutions, financial advice, and institutional asset management services.

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