BHF Earnings Prediction
The chart below shows how BHF performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BHF sees a -1.99% change in stock price 10 days leading up to the earnings, and a -2.56% change 10 days following the report. On the earnings day itself, the stock moves by +0.08%. This data can give you a slight idea of what to expect for the next quarter's release.
BHF Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.02B
72.48%
41.42%
Gross Margin
--
--
--
Operating Margin
11.20%
-79.14%
207.69%
Net Margin
8.82%
-78.55%
270.59%
EPS
2.46
-64.30%
1657.14%
No Data Available
BHF Earnings Analysis
Brighthouse Financial, Inc. Corporation (BHF.O) Earnings Conference Call
Positive
Robust Cash Reserves: 1. Strong Cash Position: Brighthouse Financial reported holding $1.3 billion in liquid assets at the holding company as of September 30, 2024, demonstrating a robust cash position that supports ongoing operations and strategic initiatives.
Total Adjusted Capital Increase: 2. Increased Total Adjusted Capital: The company's statutory combined total adjusted capital (TAC) rose to $5.7 billion, an increase of $300 million from the previous quarter, reflecting effective capital management and strategic initiatives.
Record Annuity Sales Growth: 3. Record Shield Annuity Sales: Year-to-date sales of Shield Annuity products reached $5.8 billion, marking a 15% increase over the same period in 2023 and setting a record for Brighthouse Financial.
Share Repurchase Impact: 4. Share Repurchase Program: In the third quarter, Brighthouse repurchased $64 million of its common stock, contributing to a total of over $2.4 billion repurchased since the program's inception in August 2018, effectively reducing shares outstanding by over 50%.
Cost Management Success: 5. Decreased Corporate Expenses: Corporate expenses for the year-to-date through September 30, 2024, were $610 million, reflecting a 5% decrease year-over-year, indicating effective cost management strategies.
Negative
Earnings Decline Analysis: 1. Declining Adjusted Earnings: Adjusted earnings for Q3 2024 were $243 million, down from $346 million in Q2 2024 and $275 million in Q3 2023, indicating a significant decline year-over-year.
Normalized Statutory Loss: 2. Normalized Statutory Loss: The company reported a normalized statutory loss of approximately $300 million in the quarter, reflecting ongoing challenges with new business strain and adverse market conditions.
RBC Ratio Decline: 3. RBC Ratio Under Pressure: The estimated combined risk-based capital (RBC) ratio was between 365% and 385% at the end of Q3 2024, significantly below the target range of 400% to 450%, indicating capital strain.
Rising Corporate Expenses: 4. Increased Corporate Expenses: Corporate expenses were $203 million in Q3 2024, with expectations of an increase in Q4 due to typical seasonality, suggesting ongoing cost management challenges.
Investment Yield Decline: 5. Lower Investment Returns: The alternative investment yield was only 1.6% in Q3 2024, well below the expected long-term returns of 9% to 11%, negatively impacting overall financial performance.
BHF FAQs
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BHF Earning Call Sentiment
Brighthouse Financial, Inc. (BHF) Q3 2024 Earnings Call Transcript
1.0x
00:00
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BHF.O
0.69%Positive
The earnings call summary reveals several negative factors: the company is operating below its RBC target range, faces risks with a reinsurance agreement, and has lower-than-expected investment returns. Despite share repurchases, financial metrics are weak with declining earnings. Management's vague responses in the Q&A add uncertainty. While there are positive aspects like increased life insurance sales, the overall sentiment is negative, especially given the market cap of $2.7 billion, which suggests a moderate reaction to these developments.
