Shares of MetLife, Inc. (MET) rallied 1.6% in Wednesday’s extended trading session after the company reported solid Q2 results that exceeded analysts’ expectations. MetLife is one of the largest global providers of insurance, annuities, and employee benefit programs.
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Adjusted earnings increased substantially to $2.37 per share from $0.83 per share a year ago. Also, it beat the Street’s estimates of $1.57. (See MetLife stock charts on TipRanks)
Adjusted revenues soared 17% year-on-year to $16.2 billion and surpassed the consensus mark of $15.8 billion. The top line was supported by a 7% year-over-year growth in adjusted premiums, fees, and other revenues, along with a 49% increase in adjusted investment income.
Alongside Q2 results, MetLife revealed that its board of directors have authorized a common stock repurchase program worth $3 billion. The new repurchase plan adds to the $475 million remaining under the company’s prior authorization announced in December 2020.
The President and CEO of MetLife, Michel Khalaf, said, “MetLife’s outstanding financial results in the second quarter provide further evidence of the tremendous progress we’re making in executing on our Next Horizon Strategy. Our pillars of focus, simplify and differentiate were on full display through exceptional investment returns, expense discipline, and topline growth.”
Following the release, Wells Fargo analyst Elyse Greenspan maintained a Buy rating on the stock with a price target of $74, implying 29.5% upside potential. The analyst is of the opinion that shares of MetLife “will trade up on the strong earnings and new buyback program.”
Consensus among analysts is a Strong Buy based on 7 unanimous Buys. The average MetLife price target stands at $72, which implies upside potential of 26%.
TipRanks data shows that financial blogger opinions are 100% Bullish on MET, compared to the sector average of 71%.
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