Canada's Sun Life Q3 adjusted EPS beats estimates

By Reuters News


Overview

  • Canada insurance and asset manager's Q3 adjusted EPS beat analyst expectations

  • Reported net income and EPS declined, impacted by interest rates and acquisition charges

  • Company raised quarterly dividend to C$1.00 per share from C$0.96


Outlook

  • Company did not provide specific financial guidance for the current or future periods in press release


Result Drivers

  • ASSET MANAGEMENT - GreenOak fee-related earnings increased 39%, driven by the Bell Partners Inc. acquisition and lower compensation expenses, partially offset by lower net seed investment income

  • US STOP-LOSS - US underlying net income rose on strong medical stop-loss results, reflecting double-digit premium growth and improved morbidity experience


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Beat

C$2.05

C$2.02 (12 Analysts)

Q3 EPS

C$1.40

Q3 Net Income

C$785 mln

Q3 Adjusted ROE

19.00%

Q3 ROE

13.00%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the life & health insurance peer group is "buy"

  • Wall Street's median 12-month price target for Sun Life Financial Inc is C$119.00, about 5.6% above its November 3 closing price of C$112.74

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Nov 3 - Canadian insurer Intact Financial Q3 adj EPS misses estimates

  • Nov 3 - Canada's Fairfax Financial Q3 net earnings fall on investment losses

  • Nov 3 - Assurant Q3 adjusted EPS beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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