MetLife's 2008 Guidance Disappoints; Plans $2.2B Buyback

MetLife Chairman and CEO C. Robert Henrikson issued an optimistic business outlook early Monday, but the company's 2008 EPS guidance of $5.90 to $6.20 is short of the Street's expectations of $6.26, which may put downward pressure on its shares. Nevertheless, the company's upward revised current year outlook is a penny better than estimates at the high-end range: $6.04 to $6.09 vs. $6.08. MetLife had previously raised its current year EPS forecast in July to $5.65 to $5.80, from $5.05 to $5.30 (full story). MetLife said it expects Q4 EPS of $1.40 to $1.45, compared to analyst estimates of $1.43. In a statement, Mr. Henrikson commented, "With our businesses poised to expand upon their strong performance in 2007, we are excited about 2008. On a global basis, we see a number of opportunities where MetLife is well positioned to expand its growth." The company said it is targeting operating return on equity of 13.0% to 13.6% in 2008 and 15% by year-end 2010. MetLife also said it expects to repurchase $2.2B in common stock in 2008. Shares of MetLife rose 1.1% to $65.59 on Friday and were last down 1.4% to $64.68 in thin pre-market trading.

Sources: Press release, MarketWatch
Commentary: Citigroup Names Most-At-Risk Life Insurers • Jim Cramer's Take on MET • The Imminent Death of the Insurance Industry
Stocks to watch: MET. Competitors: PRU, AZ, AIG. ETFs: KIE, IAK

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.