Lincoln National (LNC) reported a decline in revenue for the first quarter of 2023, with a year-over-year drop of 1.3% to $4.66 billion. The earnings per share (EPS) for the same period were $1.52, compared to $1.66 a year ago. While investors typically focus on revenue and earnings changes year-over-year, some key metrics offer a more accurate picture of a company’s financial health, influencing top- and bottom-line performance. Comparing these metrics to the year-ago numbers and what analysts estimated helps investors project a stock’s price performance more accurately.
Lincoln National’s Key Metrics for Q1
Here’s how Lincoln National fared in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Flows By Market – Retirement Plan Services
Lincoln National reported $535 million in net flows for its Retirement Plan Services market, compared to $804.90 million estimated by three analysts on average.
Net Flow – Insurance Solutions – Life Insurance
The company reported $852 million in net flow for its Insurance Solutions – Life Insurance market, compared to $1.05 billion estimated by three analysts on average.
Revenues – Net Investment Income
Lincoln National’s net investment income revenue was $1.47 billion, compared to the five-analyst average estimate of $1.38 billion. The reported number represents a year-over-year change of +3.8%.
Revenues – Insurance Premiums
The company’s insurance premiums revenue was $1.58 billion, compared to the $1.56 billion average estimate based on five analysts. The reported number represents a change of +6.9% year over year.
Conclusion
Despite the decline in revenue and EPS, Lincoln National’s key metrics for Q1 suggest that the company is performing reasonably well. Its insurance premiums and net investment income revenue increased year over year, indicating a steady growth trajectory. However, its life insurance revenue declined when compared to the year-ago quarter. Shares of Lincoln National have returned +1.2% over the past month versus the Zacks S&P 500 composite’s +0.9% change. Nevertheless, the stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.