Brighthouse Financial (NasdaqGS:BHF) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Brighthouse Financial, Inc. (NasdaqGS:BHF) is scheduled to report Q3 earnings results after markets close for trading on November 5, 2020.

The company is expected to report earnings of $2.44/share on revenue of $2.023 billion. The consensus earnings per share (EPS) of $2.44/share is based on a poll of 10 analysts and represents a growth in eps of 260.3% over the same quarter last year, when the company reported earnings of -$1.52/share.

The revenue forecast of $2.023 billion based on a poll of 5 analysts implies a year-over-year (YoY) decline in revenue of −0.6%. Last year the company reported $2.035 billion in revenue for the quarter.

Expected to report EPS of $2.44/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $2,022.99 $2,035.00 −0.6%
EPS $2.44 -$1.52 260.3%

Earnings Call Trends

Historically, management has exceeded analyst expectations 3 out of the last 8 tracked quarters, and missed expectations 4 quarters.

What are your expectations from Brighthouse Financial, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $1.26 $0.11 −91.3% Missed
Q1, 2020 $1.74 $2.01 15.6% Beat
Q4, 2019 $2.33 $2.61 12.2% Beat
Q3, 2019 $2.19 -$1.52 −169.4% Missed
Q2, 2019 $2.27 $2.19 −3.5% Missed
Q1, 2019 $2.07 $1.98 −4.4% Missed
Q4, 2018 $1.63 $1.56 −4.5% Missed
Q3, 2018 $2.06 $2.23 8.2% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 3.5%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 6, 2020 $29.68 $30.73 3.5% Increase
May 11, 2020 $28.73 $26.96 −6.2% Decline
February 10, 2020 $42.21 $46.60 10.4% Increase
November 4, 2019 $39.05 $41.05 5.1% Increase

Fundamentals And Technical Analysis

Brighthouse Financial, Inc. is currently trading at $30.10/share, up 1.6% for the day. The company is trading at approximately 63.0% of its 52-week high of $48.25/share. The company’s stock price is down −2.1% since the last earnings report and down −4.0% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 44.25 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NasdaqGS:BHF Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 1.11 and a forward P/E multiple of 4.07.

Brighthouse Financial, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.14. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $30.10
P/E Ratio 1.1x
P/E Ratio (Fwd) 4.1x
PEG Ratio 0.0
Total Debt / Total Capital 81.2%
Levered Free Cash Flow $1.486 billion
Price To Sales 0.2x

Finbox

Brighthouse Financial, Inc. is a mid-cap stock with a market capitalization of $2.756 billion and a total enterprise value of $7.681 billion. The company operates in the Financials sector and the Insurance industry.

Brighthouse Financial, Inc. provides annuity and life insurance products in the United States. It operates through three segments: Annuities, Life, and Run-off. The Annuities segment offers variable, fixed, index-linked, and income annuities for contract holders’ needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security. The Life segment provides term, universal, whole, and variable life products for policyholders’ needs for financial security and protected wealth transfer. The Run-off segment provides structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, funding agreements, and universal life with secondary guarantees. The company was founded in 2016 and is headquartered in Charlotte, North Carolina.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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