Yahoo Finance Lincoln National (LNC) to Report Q1 Earnings: What to Expect?
Lincoln National Corporation LNC is slated to release first-quarter 2023 results on May 9, after market close.
Q1 Estimates
The Zacks Consensus Estimate for LNC’s first-quarter earnings per share is pegged at $1.51, which indicates a decline of 9% from the prior-year quarter’s reported figure but is within the management’s guidance of $1.47-$1.56.
The consensus mark for revenues stands at $4,593 million, suggesting a 2.6% fall from the year-ago quarter’s actual.
Earnings Surprise History
Lincoln National’s earnings missed estimates in each of the trailing four quarters, the average negative surprise being 174.90%. This is depicted in the chart below:
Lincoln National Corporation Price and EPS Surprise
Lincoln National Corporation price-eps-surprise | Lincoln National Corporation Quote
What Our Quantitative Model Unveils
Our proven model predicts an earnings beat for Lincoln National this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here.
Earnings ESP: Lincoln National has an Earnings ESP of +0.97% because the Most Accurate Estimate of $1.82 is pegged higher than the Zacks Consensus Estimate of $1.81. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: LNC carries a Zacks Rank of 3.
Factors to Note
Growing insurance premiums from the Group Protection segment are expected to have provided some respite to the top line of Lincoln National in the to-be-reported quarter. Additionally, the unit is likely to have been aided by reduced COVID-linked claims and better underlying disability performance.
The Zacks Consensus Estimate for the operating income of the Group Protection business stands at $42.2 million. An operating loss of $41 million was reported in the prior-year quarter.
The Life Insurance segment of Lincoln National is expected to have provided an impetus to its quarterly performance on the back of improved indexed universal life sales. However, the continued incidence of pandemic claims and elevated reinsurance costs are likely to have been roadblocks to the unit's performance in the first quarter. The Zacks Consensus Estimate for the segment's operating income is pegged at $64 million, which indicates an improvement of 10.3% from the prior-year quarters’ reported figure.
However, declines in net investment income and fee income are likely to have weighed on Lincoln National’s revenues in the first quarter. The Zacks Consensus Estimate for fee income stands at $1,462 million, which implies a decrease of 6.8% from the prior-year quarter’s reported number. The figure is also lower than our estimate of $1,514.8 million.
The consensus mark for net investment income is pegged at $1,379 million, suggesting a fall of 2.3% from the year-ago quarter’s reported number but surpassing our estimate of $1,298.1 million.
The quarterly results of LNC are likely to have taken a hit from feeble contributions by the Annuities and Retirement Plan Services segments in the first quarter.
Weaker returns from equity markets are likely to have exerted pressure on the performance of the Annuities unit. Meanwhile, the same factor is expected to have reduced fees and alternative investment income in the Retirement Plan Services unit in the to-be-reported quarter.
The Zacks Consensus Estimate for the Annuities unit’s operating income is pegged at $271 million, which indicates a drop of 10.3% from the prior-year quarter's actuals. The consensus mark for operating income in the Retirement Plan Services segment stands at $52 million, suggesting a 5.5% decline from the year-ago quarter’s reported figure.
Despite undertaking numerous cost-cutting initiatives, the margins of Lincoln National are expected to have suffered a blow due to persistent inflationary headwinds and expenses linked with its legacy pension plan in the to-be-reported quarter.
Other Stocks to Consider
Here are some other companies from the Finance space, which according to our model, have the right combination of elements to beat on earnings this time around:
Armada Hoffler Properties, Inc. AHH currently has an Earnings ESP of +3.33% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AHH’s first-quarter 2023 earnings is pegged at 30 cents per share, indicating an improvement of 7.1% from the prior-year quarter’s reported number.
Armada Hoffler’s earnings beat estimates in two of the trailing four quarters and matched the mark twice, the average surprise being 3.21%.
Owl Rock Capital Corporation ORCC has an Earnings ESP of +0.47% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for ORCC’s first-quarter 2023 earnings stands at $43 cents per share, suggesting 38.7% growth from the year-ago quarter’s reported figure.
Owl Rock Capital’s earnings beat estimates in three of the trailing four quarters and missed the mark once, the average surprise being 2.12%.
Runway Growth Finance Corp. RWAY has an Earnings ESP of +3.33% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for RWAY’s first-quarter 2023 earnings is pegged at 45 cents per share, which indicates an improvement of 50% from the prior-year quarter’s reported figure.
Runway Growth Finance’s earnings beat estimates in each of the trailing four quarters, the average surprise being 7.77%.
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
Lincoln National Corporation (LNC) : Free Stock Analysis Report
Owl Rock Capital Corporation (ORCC) : Free Stock Analysis Report
Armada Hoffler Properties, Inc. (AHH) : Free Stock Analysis Report
Runway Growth Finance Corp. (RWAY) : Free Stock Analysis Report
