NEW YORK (TheStreet) -- MetLife (MET) shares are down 1.17% to $51.50 in trading on Wednesday ahead of the release of the insurance and annuities provider's first quarter earnings results after the closing bell today.
The New York City-based company is expected to report an operating income of $1.41 per share, a 4 cent increase over $1.37 the company reported in the year ago period. Revenue for the period is expected to climb to $17.53 billion from the $17.12 billion it reported a year ago.
During the previous quarter, the company's operating income of $1.38 cents per share and revenue of $18.2 billion topped analysts $1.36 cent per share and $18 billion expectations.
TheStreet Ratings team rates METLIFE INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate METLIFE INC (MET) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- MET's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 3.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- METLIFE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, METLIFE INC increased its bottom line by earning $5.42 versus $2.91 in the prior year. This year, the market expects an improvement in earnings ($5.85 versus $5.42).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 67.5% when compared to the same quarter one year prior, rising from $908.00 million to $1,521.00 million.
- Despite currently having a low debt-to-equity ratio of 0.33, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
- You can view the full analysis from the report here: MET Ratings Report