MetLife (NYSE:MET) will announce its fourth-quarter 2022 earnings results on February 1. The quarter is expected to have been characterized by several challenges as well as tailwinds. Let’s take a look at which pan of the weighing scale might have been heavier.
The insurance and financial services provider’s earnings have managed to outpace Street estimates for nine consecutive quarters. For Q4, Wall Street expects MET’s earnings per share to be $1.68 on revenues of $17.27 billion. In contrast, the company reported adjusted earnings of $2.17 per share on revenues of $20.21 billion in Q4FY21.
Factors That Could Have Affected MET’s Q4 Performance
High-interest rates and inflation are expected to hurt top-line performance in the form of lower premiums. Variable investment income is likely to have taken a hit during the quarter, especially in Asia, dampening MET’s top-line growth.
However, rising policyholder benefits and claims in the face of high inflation and fears of a deeper downturn might have pressed Metlife’s margins in Q4.
Nevertheless, the performances of the U.S., Latin America, and Europe, the Middle East, and Africa (EMEA) segments are likely to have been strong, driven by a significant decline in COVID life insurance claims in Q4.
It will be interesting to see whether the strong revenue performances in the U.S., Latin America, and EMEA regions can pull the company into an earnings and revenue beat this time.
Is MET a Good Stock to Buy?
Wall Street is bullish on MET stock, with a Strong Buy rating based on seven Buys and two Holds. The average price target of $82.89 reflects an upside potential of 14.87% on the current price level.
