Why Is MetLife (MET) Down 1.7% Since Last Earnings Report?

Core Viewpoint - MetLife's recent earnings report showed mixed results, with adjusted operating earnings per share (EPS) missing estimates but showing year-over-year growth. The company faces challenges in certain segments, particularly in the Group Benefits and Retirement and Income Solutions (RIS) units, while some areas like Asia performed well [2][3][9]. Financial Performance - Adjusted operating EPS for Q4 2024 was $2.08, missing the Zacks Consensus Estimate by 2.4%, but increased by 7.8% year over year [2]. - Adjusted operating revenues reached$ 19.7 billion, a 5.4% increase year over year, surpassing consensus estimates by 2.7% [2]. - Total expenses were $17.3 billion, down 4.4% year over year, attributed to lower interest credited to policyholder accounts and reduced interest expenses [5]. Segment Analysis - Group Benefits segment reported adjusted earnings of$ 416 million, down 11% year over year, but above the consensus estimate [7]. - RIS segment's adjusted earnings fell 8% year over year to $386 million, missing estimates due to reduced margins [8]. - Asia's adjusted earnings grew 50% year over year to$ 443 million, exceeding estimates, although adjusted PFOs declined by 4% [9]. - Latin America reported adjusted earnings of $201 million, a 3% decrease year over year, but a 10% increase on a constant currency basis [10]. - EMEA segment's adjusted earnings increased 26% year over year to$ 59 million, though it was below consensus estimates [11]. Capital and Equity - As of December 31, 2024, MetLife had cash and cash equivalents of $20.1 billion, a decline of 2.8% from the previous year [13]. - Total equity fell 8.4% year over year to$ 27.7 billion, with book value per share at $34.28, down 4.4% [14]. Future Outlook - Management anticipates variable investment income of$ 1.7 billion for 2025 and expects adjusted losses in the Corporate & Other segment to be between $850 million and$ 950 million [16]. - Over the next three years, adjusted PFOs in the Group Benefits business are projected to rise by 4-7%, while declines are expected in the MetLife Holdings segment [17]. - The company aims for an adjusted return on equity in the range of 15-17% and double-digit adjusted EPS growth in the near term [18]. Market Position - MetLife's stock has a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [22]. - The company is part of the Zacks Insurance - Multi line industry, which has seen varied performance among peers, such as Everest Group, which reported significant revenue growth but faced challenges in EPS [23][24].