In This Article:
Brighthouse Financial, Inc. BHF is set to report second-quarter 2018 earnings on Aug 6 after the market closes. Notably, the company delivered a positive surprise of 15.69% in the first quarter.
Let’s see, what is in store for the company this yet-to-be reported quarter.
An expansive and a compelling suite of life and annuity products plus a strong market presence and efforts to enhance sales of annuity products should have supported Brighthouse Financial’s second-quarter results.
The company’s sustained efforts to boost distribution platform and network coupled with developing new products have likely aided the premium increase. An improving rate environment and an increase in alternate investment income has possibly favored the company’s investment income in the second quarter of 2018. Also, Brighthouse Financial had diverted $2 billion of treasuries into higher-yielding spread assets to aid its investment income.
Annuity sale has probably retained this momentum, driven by better performing Shield and fixed indexed annuities. The company had rolled out new campaign in April to build brand awareness and showcase flagship Shield annuities.
Brighthouse Financial strives to provide cost-effective products to its customers. To that end, the company is exiting Transition Service Agreements with MetLife in its effort to lower costs. However, higher expenses should have continued to pressure on the margin. The company expects second-quarter corporate expenses to be considerably high.
Nonetheless, lower taxes, owing to the implementation of the Tax Cuts and Jobs Act, should have provided a cushion to the bottom line.
The Zacks Consensus Estimate for earnings in the quarter to be reported is pegged at $2.03 per share on revenues of $2.07 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 Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
Earnings ESP: Brighthouse Financial has an Earnings ESP of -1.28%, decreasing the odds of an earnings surprise. This is because the Most Accurate Estimate of $2.00 is pegged lower than the Zacks Consensus Estimate of $2.03. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Brighthouse Financial, Inc. Price and EPS Surprise
Brighthouse Financial, Inc. Price and EPS Surprise | Brighthouse Financial, Inc. Quote