Seeking Alpha
Recommended for you:
Profile| Send Message|
( followers)  

MetLife, Inc. (NYSE:MET) is scheduled to report its Q2 2012 results on August 2, 2012, before market opens. The Street expects EPS and revenue of $1.25 and $16.98B, respectively.

In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from MET and the news from its closest competitors.

MetLife, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter, it reported $1.37 EPS, beating analyst estimates of $1.29.

MetLife, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $1.25 based on 19 analysts' estimates, just above $1.24 from a year ago. Revenue estimates are $16.98B, up from $16.88B a year ago. The median target price by analysts for the stock is $44.00.

Average recommendation: Buy

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On April 2, 2012, Barclays reiterated Overweight rating for the company.
  • On February 15, 2012, RBC Capital Mkts reiterated Sector Perform rating for the company.

Latest News

  • On July 25, 2012, Metlife Inc announced that John C. R. Hele, 53, will join the company as executive vice President and Chief Financial Officer, effective September 4, 2012.
  • On May 31, 2012, Dow Jones reported that KOREA LIFE INSURANCE and Kb Financial Group Inc have been shortlisted in the bidding for ING Groep NV's life insurance operations in Asia.
  • On May 19, 2012, Reuters reported that Manulife Financial Corp and MetLife, Inc. are among the companies that have submitted first round bids for ING Groep NV's entire Asia life insurance business, sources said on Saturday.
  • On May 18, 2012, Reuters reported that Manulife Financial Corp, Metlife Inc and Prudential Financial Corp are among suitors expected to place first round bids on Friday to buy ING Groep's Asia life insurance unit in a deal worth about $6.5 billion to $7.0 billion, sources familiar with the matter said.
  • On May 15, 2012, Metlife Inc announced that it has declared second quarter 2012 dividends of $0.2555555 per share on the Company`s floating rate non-cumulative preferred stock, Series A, and $0.4062500 per share on the Company`s 6.50% non-cumulative preferred stock, Series B. Both dividends are payable June 15, 2012 to shareholders of record as of May 31, 2012.
  • On April 27, 2012, Reuters reported that MetLife Inc will cut about 500 jobs after selling its reverse mortgage servicing portfolio, a spokesman of the life insurer in the United States said on Thursday.
  • On April 23, 2012, Dow Jones reported that California State Controller John Chiang on Monday said MetLife, Inc. will pay $500 million as part of a multi-state investigation into whether companies were holding funds intended for beneficiaries, Bloomberg News reported.
  • On April 20, 2012, Reuters reported that MetLife, Inc. expects a loss of $0.09 per share for the first quarter of 2012 after applying new guidance on deferred acquisition costs.
  • On March 26, 2012, Reuters reported that insurers including MetLife, Inc. and Manulife Financial Corp are hiring banks to advise them on a potential purchase of the Asian insurance and asset management arms of ING Groep NV. MetLife has hired Credit Suisse.
  • On February 17, 2012, MetLife, Inc. announced that it has declared first quarter 2012 dividends of $0.2527777 per share on the Company`s floating rate non-cumulative preferred stock, Series A, and $0.4062500 per share on the Company`s 6.50% non-cumulative preferred stock, Series B, subject to the final confirmation that it has met the financial tests specified in the Series A and Series B preferred stock, which the Company anticipates will be made on or about March 5, 2012, the earliest date permitted in accordance with the terms of the securities.
  • On February 9, 2012, EverBank Financial Corp announced that it has reached an agreement to acquire MetLife Bank's Warehouse Finance business. Financial terms of the transaction were not disclosed.

Competitors

American International Group (NYSE:AIG), ING Groep (NYSE:ING), and Prudential Financial (NYSE:PRU) are considered major competitors for MetLife and the table below provides the key metrics for these companies and the industry.

MetLife, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.

MET Chart

MET data by YCharts

Competitors' Latest Development

  • On July 24, 2012, Reuters reported that ING Groep NV was in talks with the Dutch state and the European Commission over an amended restructuring plan. The discussions are not expected to affect ING's plan to divest its insurance business, but could mean it no longer has to sell its Dutch banking unit, known as WestlandUtrecht.
  • On July 18, 2012, International Lease Finance Corporation (ILFC), a wholly owned subsidiary of American International Group, Inc., announced that it had entered into a leasing agreement with China Airlines for three new Boeing 737-800s.
  • On July 16, 2012, Reuters reported that Dai-ichi Mutual Life Insurance Company and Korea Life Insurance Co Ltd, were first out of the blocks to submit second-round bids on Monday for ING Groep NV's insurance operations in Southeast Asia, as the Dutch insurer moves to divest it Asian operations.
  • On July 6, 2012, Reuters reported that the World Bank's investment arm and ING Groep NV's ING Bank would partner in a $500 million facility to ensure that food and energy traders continue to have access to finance at a time when bank lending is tightening.
  • On June 26, 2012, Dow Jones reported that Fitch Ratings has affirmed ratings for ING Groep NV and SNS Reaal with stable outlook.
  • On June 19, 2012, Reuters reported that The Bank of New York Mellon Corporation will compensate Prudential Financial, Inc after the insurer complained about the pricing of its foreign exchange transactions, according to a recent court filing by the U.S. Justice Department.
  • On June 15, 2012, Reuters reported that Moody's Investors Service had downgraded five Dutch banks, four of them by two notches, and warned a Greek exit of the euro would see further cuts, kicking off a long-awaited round of downgrades for major European institutions.
  • On June 12, 2012, AIG Century GmbH & Co. KGaA (AIG Century), a company indirectly wholly owned by American International Group, Inc., announced that it has published the offer document for its voluntary public tender offer for all shares of AIRE GmbH & Co. KgaA.
  • On June 12, 2012, ING Groep NV announced that ING Bank has entered into a Settlement Agreement with United States Department of the Treasury's Office of Foreign Assets Control and Deferred Prosecution Agreements with the Department of Justice, the United States Attorney's Office for the District of Columbia and the District Attorney of the County of New York in relation to the investigation by those agencies into compliance with United States economic sanctions and United States dollar payment practices until 2007.
  • On June 12, 2012, Prudential Financial, Inc announced that its Board of Directors has authorized the repurchase of up to $1.0 billion of its outstanding Common Stock during the period from July 1, 2012 through June 30, 2013.
  • On May 31, 2012, Dow Jones reported that ING Groep NV and its advisers have narrowed down the field of suitors for its Asian life insurance operations to a short-list that includes Canada's Manulife Financial Corp and Hong Kong's AIA Group Limited.
  • On May 31, 2012, Dow Jones reported that KOREA LIFE INSURANCE and Kb Financial Group Inc have been shortlisted in the bidding for ING Groep NV's life insurance operations in Asia.
  • On May 18, 2012, Reuters reported that Manulife Financial Corp, Metlife Inc and Prudential Financial Corp are among suitors expected to place first round bids on Friday to buy ING Groep's Asia life insurance unit in a deal worth about $6.5 billion to $7 billion, sources familiar with the matter said.
  • On April 30, 2012, AIRE GmbH & Co. KGaA (AIRE) announced that on April 29, 2012, AIG Century GmbH & Co. KGaA , an indirectly wholly owned subsidiary of American International Group, Inc. decided to make an offer by means of a voluntary public takeover offer to the shareholders of AIRE to acquire their non-par value bearer shares in AIRE against payment of a cash consideration of EUR 17.00 per share.
  • On April 25, 2012, Reuters reported that a New York judge on Tuesday rejected an effort by American International Group, Inc. and other objectors to Bank of America Corporation's proposed $8.5 billion mortgage bond settlement to convert the case to a proceeding that may have widened its scope.
  • On April 23, 2012, International Lease Finance Corporation , a wholly owned subsidiary of American International Group, Inc., announced that it has closed a $203 million bank loan arranged and underwritten by DVB Bank.
  • On April 4, 2012, Reuters reported that American International Group, Inc. is considering launching the initial public offering (NYSEARCA:IPO) of airplane leasing business International Lease Finance in the second quarter, CNBC reported on April 4, 2012 citing people familiar with the deal.
  • On March 28, 2012, Grupo Aeromexico SAB de CV (Grupo Aeromexico) announced that it has completed an alliance agreement with International Lease Finance Corporation , which is a subsidiary of American International Group Inc, by adding two new Boeing 787-800 to its fleet under an operating lease.
  • On March 26, 2012, Reuters reported that insurers including MetLife, Inc. and Manulife Financial Corp are hiring banks to advise them on a potential purchase of the Asian insurance and asset management arms of ING Groep NV. MetLife has hired Credit Suisse.
  • On March 16, 2012, Reuters reported that several banks including The Goldman Sachs Group, Inc. have shown an interest in buying American International Group, Inc. complex and troubled assets tied to the insurer's bailout, the Wall Street Journal reported.
  • On March 15, 2012, International Lease Finance Corporation, a wholly owned subsidiary of American International Group, Inc., announced that it has priced, and entered into an agreement to issue and sell, subject to certain conditions, $750,000,000 aggregate principal amount of 4.875% senior notes due 2015 (the 2015 Notes) and $750,000,000 aggregate principal amount of 5.875% senior notes due 2019 (the 2019 Notes and, together with the 2015 Notes, the Notes) pursuant to an effective registration statement filed on August 7, 2009 with the Securities and Exchange Commission.
  • On March 8, 2012, American International Group announced that the U.S. Department of the Treasury (Treasury) has launched an offering of $6 billion of its American International Group common stock.
  • On March 8, 2012, American International Group, Inc. announced that the U.S. Department of the Treasury (Treasury) has priced an offering of 206,896,552 shares of its AIG common stock at $29.00 per share.
  • On March 6, 2012, American International Group, Inc. announced that it has priced the sale of 1.72 billion ordinary shares of AIA Group Limited by means of a placing to certain institutional investors.
  • On March 5, 2012, Reuters reported that American International Group, Inc. is looking to raise about $6 billion by selling part of its stake in Asia subsidiary AIA Group Ltd in a long-awaited move to help the U.S. insurer repay a federal government bail-out.
  • On February 17, 2012, Prudential Real Estate Investors (PREI) and Greystar announced that they have formed a joint venture to develop a 200-unit Class-A, mid-rise luxury apartment community in downtown Charleston, S.C. PREI is the real estate investment management and advisory business of Prudential Financial, Inc.. PREI is acting on behalf of German investors.
  • On February 7, 2012, Reuters reported that American International Group, Inc. will review its succession plans after its Chairman accepted a job as the Chief Executive of an airplane maker.

Technical Overview


The stock has a market capitalization of $32.33B and is currently trading at $30.44 with a 52-week range of $25.61-$41.98. The stock's year-to-date performance has been -2.37%. It is currently trading above 20 and 50 SMA, but below 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: MetLife