U.S. Markets close in 2 hrs 46 mins
  • S&P 500

    4,461.17
    -19.53 (-0.44%)
     
  • Dow 30

    34,660.75
    -153.64 (-0.44%)
     
  • Nasdaq

    15,112.27
    -49.26 (-0.32%)
     
  • Russell 2000

    2,249.73
    -25.88 (-1.14%)
     
  • Crude Oil

    69.39
    +1.04 (+1.52%)
     
  • Gold

    1,790.70
    -7.80 (-0.43%)
     
  • Silver

    23.95
    -0.38 (-1.58%)
     
  • EUR/USD

    1.1823
    -0.0025 (-0.2128%)
     
  • 10-Yr Bond

    1.3290
    +0.0250 (+1.92%)
     
  • Vix

    17.96
    -0.18 (-0.99%)
     
  • GBP/USD

    1.3773
    -0.0013 (-0.0909%)
     
  • USD/JPY

    110.2260
    -0.0330 (-0.0299%)
     
  • BTC-USD

    47,994.39
    -154.89 (-0.32%)
     
  • CMC Crypto 200

    1,234.20
    +0.91 (+0.07%)
     
  • FTSE 100

    7,095.53
    -53.84 (-0.75%)
     
  • Nikkei 225

    30,181.21
    +265.07 (+0.89%)
     

Brighthouse (BHF) Q4 Earnings Beat Estimates, Revenues Miss

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

Brighthouse Financial Inc.'s BHF fourth-quarter 2020 adjusted net income of $3.03 per share surpassed the Zacks Consensus Estimate by 10.9%. Moreover, the bottom line improved 23.2% year over year.

The reported quarter witnessed continued sales growth in annuities and lower expenses. For 2020, adjusted net income was $10.19 per share.

Brighthouse Financial, Inc. Price, Consensus and EPS Surprise

Brighthouse Financial, Inc. Price, Consensus and EPS Surprise
Brighthouse Financial, Inc. Price, Consensus and EPS Surprise

Brighthouse Financial, Inc. price-consensus-eps-surprise-chart | Brighthouse Financial, Inc. Quote

Behind the Headlines

Total revenues of $131 billion missed the Zacks Consensus Estimate by 93.7%. Moreover, the top line declined 57.2% year over year, mainly due to derivative loss of $2.4 billion.

Premiums of $191 million decreased 8.6% year over year.

Adjusted net investment income was $1 billion in the quarter under review, up 15.3% year over year. The improvement was driven primarily by higher alternative investment income. Investment income yield was 4.56%.

Corporate expenses of $236 million pretax decreased 16.6% year over year.
Total expenses declined 14.4% year over year to $1.4 billion due to a decrease in policyholder benefits and claims and interest expense on debt.

Quarterly Segmental Update

Annuities reported adjusted operating income of $293 million, up 10.6% year over year, reflecting lower expenses, higher net investment income, higher fees, and lower deferred acquisition costs (DAC) amortization. Annuity sales increased 57.7% to $2.9 billion.

Life generated adjusted operating income of $13 million, down 82.7% year over year due to lower underwriting margin, partially offset by higher net investment income and lower expenses. Life insurance sales were $15 million, which compared favorably with the prior-year sales of $12 million.

Adjusted operating earnings of Run-off were $25 million, up 316.7% year over year, reflecting higher net investment income, partially offset by a lower underwriting margin.

Adjusted operating loss at Corporate & Other was $142 million, which was wider than the prior-year loss of $64 million.

Financial Update

The company’s cash and cash equivalents were $4.1 billion, up 42.8% year over year.

Shareholders’ equity of $18 billion at the end of the quarter increased 11.4% year over year.

Book value per share, excluding accumulated other comprehensive income (AOCI), was $124.10 as of Dec 31, 2020, up 5.1% year over year.

Share Buyback Program

Brighthouse bought back shares worth $97 million in the quarter under review. Moreover, the company also announced repurchase of up to an additional $200 million of common stock.

Zacks Rank & Peer Releases

Brighthouse currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Fourth-quarter earnings of Chubb Limited CB, Reinsurance Group of America, Incorporated RGA, and Markel Corporation MKL beat the respective Zacks Consensus Estimate.

+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities

In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.

Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.

Click here to download this report FREE >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Chubb Limited (CB) : Free Stock Analysis Report

Markel Corporation (MKL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research