MetLife (NYSE:MET) Posts Earnings Results, Misses Expectations By $0.30 EPS

Key Points

• MetLife reported quarterly earnings of $2.02 per share, missing analysts' expectations by $0.30, while revenue fell to $17.34 billion compared to the anticipated $18.58 billion.
• The company's board announced a $3 billion share buyback program, indicating a belief that MetLife's stock is currently undervalued.
• Despite the earnings miss, analysts show a positive outlook with ten buy ratings and an average target price of $95.40 for MetLife stock.

MetLife (NYSE:MET - Get Free Report) posted its earnings results on Wednesday. The financial services provider reported $2.02 EPS for the quarter, missing the consensus estimate of $2.32 by ($0.30), Zacks reports. The business had revenue of $17.34 billion for the quarter, compared to analyst estimates of $18.58 billion. MetLife had a return on equity of 19.88% and a net margin of 5.83%. The firm's quarterly revenue was down 2.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.28 earnings per share.

MetLife Stock Performance

NYSE:MET traded up $1.28 during mid-day trading on Tuesday, reaching $76.58. 2,070,528 shares of the stock were exchanged, compared to its average volume of 3,426,053. The company has a quick ratio of 0.16, a current ratio of 0.16 and a debt-to-equity ratio of 0.57. MetLife has a 1 year low of $65.21 and a 1 year high of $89.05. The stock has a market capitalization of $51.41 billion, a P/E ratio of 12.99, a P/E/G ratio of 0.67 and a beta of 0.85. The company has a 50 day simple moving average of $78.02 and a 200-day simple moving average of $78.92.

MetLife Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 9th. Shareholders of record on Tuesday, August 5th will be given a $0.5675 dividend. The ex-dividend date of this dividend is Tuesday, August 5th. This represents a $2.27 dividend on an annualized basis and a yield of 3.0%. MetLife's dividend payout ratio (DPR) is currently 38.47%.

MetLife announced that its Board of Directors has authorized a stock repurchase program on Wednesday, April 30th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the financial services provider to reacquire up to 5.9% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board believes its shares are undervalued.

Analysts Set New Price Targets

Several research analysts have weighed in on MET shares. Wells Fargo & Company restated an "overweight" rating and set a $97.00 price objective (up previously from $94.00) on shares of MetLife in a report on Thursday, July 10th. Wall Street Zen lowered shares of MetLife from a "buy" rating to a "hold" rating in a research report on Saturday, May 24th. Jefferies Financial Group lifted their target price on shares of MetLife from $100.00 to $103.00 and gave the stock a "buy" rating in a research note on Monday. JPMorgan Chase & Co. boosted their price objective on shares of MetLife from $86.00 to $95.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Finally, Morgan Stanley restated an "overweight" rating and set a $98.00 target price (down previously from $99.00) on shares of MetLife in a report on Monday, July 14th. Two research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $96.00.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Empowered Funds LLC grew its position in MetLife by 187.6% during the first quarter. Empowered Funds LLC now owns 33,378 shares of the financial services provider's stock valued at $2,680,000 after acquiring an additional 21,771 shares during the period. Caxton Associates LLP purchased a new position in MetLife in the first quarter valued at about $307,000. Finally, Brighton Jones LLC boosted its holdings in MetLife by 9.0% in the fourth quarter. Brighton Jones LLC now owns 4,240 shares of the financial services provider's stock valued at $347,000 after purchasing an additional 351 shares during the last quarter. Hedge funds and other institutional investors own 94.99% of the company's stock.

MetLife Company Profile

MetLife, Inc, a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through six segments: Retirement and Income Solutions; Group Benefits; Asia; Latin America; Europe, the Middle East and Africa; and MetLife Holdings. The company offers life, dental, group short-and long-term disability, individual disability, pet insurance, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and general and separate account, and synthetic guaranteed interest contracts, as well as private floating rate funding agreements.