What's In Store For Brighthouse Financial (BHF) Q3 Earnings?
Zacks Investment Research | Nov 01, 2018 06:43AM ET
Brighthouse Financial, Inc. (NASDAQ:BHF) is set to report third-quarter 2018 earnings on Nov 5, after the market closes. The company witnessed a negative surprise of 37.44% in the second quarter.
Let’s see, what is in store for the company this yet-to-be reported quarter.
Brighthouse Financial’s premiums are likely to have benefited from its compelling portfolio of life and annuity products coupled with its strong market presence.
The company’s efforts to ramp up its new sales of life insurance should have favoured its life insurance business in turn.
Its growing asset base and an ongoing repositioning of the investment portfolio coupled with an improving rate environment is expected to have contributed to an improved investment income. Brighthouse Financial diverted $2 billion of treasuries into higher-yielding spread assets to aid its investment income.
Annuity sales are anticipated to have grown on the back of better performing Shield and fixed indexed annuities. Strong distribution relationships and prudent marketing should have driven this upside.
Brighthouse Financial is well on its track to exit its Transition Service Agreements with MetLife (NYSE:MET) in a bid to contain costs. Nonetheless, expenses are expected to have remained elevated, weighing on the company’s margin expansion. Also, the company expects third-quarter corporate expenses to be considerably high.
Nonetheless, lower taxes and an impact of share buybacks might have boosted the bottom line.
The Zacks Consensus Estimate for earnings in the quarter to be reported is pegged at $2.19 per share on revenues of $2.05 billion.
What Our Quantitative Model Predicts
Our proven model does not conclusively show that Brighthouse Financial is likely to beat on earnings this reporting season. This is because a stock needs to have both a positive
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