Earnings Preview: Lincoln National Corp.

Oct.28.09 | About: Lincoln National (LNC)

Lincoln National Corp. (NYSE:LNC) is expected to report Q3 earnings today after the market close with a conference call scheduled on Thursday, October 29 at 11 am ET.

Guidance

Analysts are looking for EPS of 76c on revenue of $2.44B. The consensus range is 68c-89c for EPS, and $2.37B-$2.56B for revenue, according to First Call.

Analyst Views

Wells Fargo earlier this month raised its valuation range for Lincoln National, although it did lower its Q3 estimate for the company. The firm thinks that better market conditions should allow insurance companies, including Lincoln National, to post "generally positive results." The firm identifies Lincoln National as a Top Pick. Goldman Sachs also had a favorable outlook on Lincoln National earlier this month. The firm said that the insurer was its favorite stock in the life insurance sector since it had less risk due to its valuation and adequate capital. But Goldman also said that it believes the risk/reward ratio among non-life insurers is superior to that of life insurance companies.

FBR Capital initiated Lincoln National with an Outperform rating and $35 target on September 17. The firm thinks the company can grow over the long-term due to the aging population. In addition, FBR Capital believes that the insurer is adequately capitalized, has a good mix of stable operating segments and retirement segment growth potential, and offers a better risk-adjusted return than its peers.