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Aegon (AEG) to Post Q1 Earnings: What You Should Expect

Zacks Equity Research
·3 min read

Aegon N.V. AEG, an international diversified insurance company, is expected to report its first-quarter 2023 results soon.

In the last reported quarter, the company’s operating results were aided by 26%, 13% and 3% growth in the Americas, The Netherlands and the United Kingdom, respectively. Improved claims experience and expense savings further supported the bottom line.

Let’s see how things have shaped up prior to the first-quarter earnings announcement.

Factors to Note

The Zacks Consensus Estimate for first-quarter earnings per share of 20 cents has witnessed no movement in the past week. The estimated figure projects an increase of 33.3% from the prior-year reported number. Growth in workplace solutions is likely to have supported the upside.

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The company is expected to have continued witnessing growth in new life sales, supported by operations in Brazil, Spain and Portugal. However, adverse market conditions in China are anticipated to have partially offset the positives.

AEG’s expense savings program is likely to have provided some respite to the bottom line. Additional growth initiatives and hedging programs are expected to benefit the company’s first-quarter results. The high interest rate environment is anticipated to have boosted investment income.

Continued growth in the Americas, The Netherlands and the United Kingdom are predicted to buoy AEG’s first-quarter results. However, an expected fall in the asset management category and widening holding and other activities losses are likely to have partially offset the positives, making an earnings beat uncertain. Its life business in the Americas is likely to have witnessed significant growth, offsetting declines in other businesses like accident health and variable annuities.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Aegon this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: The company has an Earnings ESP of 0.00%. The Most Accurate Estimate is currently pegged at 20 cents per share, in line with the Zacks Consensus Estimate.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Aegon currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

While an earnings beat looks uncertain for Aegon, here are some companies in the broader Finance space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

Robinhood Markets, Inc. HOOD has an Earnings ESP of +0.82% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for HOOD’s bottom line for the to-be-reported quarter remained stable over the past week. Robinhood Markets beat earnings estimates in three of the past four quarters and missed once, with an average surprise of 41.6%.

Tricon Residential Inc. TCN has an Earnings ESP of +2.85% and is a Zacks #3 Ranked player.

The Zacks Consensus Estimate for Tricon Residential’s bottom line for the to-be-reported quarter is pegged at 12 cents per share, which has remained stable over the past week. TCN beat earnings estimates in two of the past four quarters and missed twice, with an average surprise of 1.1%.

Terreno Realty Corporation TRNO has an Earnings ESP of +0.47% and a Zacks Rank of 3.

The Zacks Consensus Estimate for Terreno Realty’s bottom line for the to-be-reported quarter is pegged at 53 cents per share, suggesting a 15.2% year-over-year increase. TRNO beat earnings estimates in three of the past four quarters and met once, with an average surprise of 2.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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

Aegon NV (AEG) : Free Stock Analysis Report

Terreno Realty Corporation (TRNO) : Free Stock Analysis Report

Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report

Tricon Residential Inc. (TCN) : Free Stock Analysis Report

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Zacks Investment Research