Lincoln National Q3 adjusted EPS misses estimates

Overview

• US life insurance and retirement provider's Q3 adjusted EPS missed analyst expectations

• Net income for Q3 rose sharply from prior-year quarter

• Company resumed share buybacks and retired $437 mln of preferred stock

Outlook

• Company expects to drive disciplined, profitable growth and increase free cash flow

• Company says improved financial flexibility supports resumption of share repurchases

• Company notes continued volatility in disability claims severity in Group Protection segment

Result Drivers

• LIFE INSURANCE - Higher alternative investment income, improved mortality, and captive consolidation drove year-over-year earnings growth

• ANNUITIES - Sequential earnings growth driven by higher spread income and favorable equity markets; year-over-year moderation due to investment income reallocation and variable annuity outflows

• GROUP PROTECTION - Lower earnings due to higher disability claim severity and normalization in incidence rates, partially offset by favorable life results

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"

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

• Wall Street's median 12-month price target for Lincoln National Corp is $48.00, about 15.4% above its November 4 closing price of $41.60

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

Reuters Recommended Reads

• Nov 3 - Prudential Q3 profit, operating income decline due to Japan sales suspension

• Nov 4 - MetLife's Q3 results beat estimates on volume growth, solid underwriting

• Nov 4 - Aflac Q3 revenue misses on Japan segment pressure

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.)