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Lincoln National Q3 adjusted EPS misses estimates

By Reuters News


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

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Miss

$1.72

$1.96 (13 Analysts)

Q3 Net Income

$1.4 bln


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.)

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