A month has gone by since the last earnings report for Brighthouse Financial (BHF). Shares have added about 1.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Brighthouse Financial due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Brighthouse Financial Q1 Earnings Miss Estimates on Lower Premiums
Brighthouse Financial reported first-quarter 2026 adjusted net income of $4.35 per share, which missed the Zacks Consensus Estimate by 8.4%. However, the bottom line grew 4.3% year over year. The quarterly results reflected lower premiums, a decline in adjusted net investment income and lower sales, offset by reduced expenses.
Behind the Headlines
Total operating revenues of $2.1 billion decreased 3.4% year over year, due to lower premiums, universal life and investment-type product policy fees, net investment income and other revenues. Premiums of $168 million decreased 9.7% year over year.
Adjusted net investment income was $1.3 billion in the quarter under review, down 1.8% year over year, primarily due to a reduction in the size of the institutional spread margin business. The investment income yield was 4.24%.
Total expenses were $2.5 billion, which declined 8.4% year over year. Corporate expenses, pretax, were $227 million, which declined 5% year over year.
Quarterly Segmental Update of BHF
Annuities recorded an adjusted operating income of $324 million, up 3.2% year over year. Annuity sales decreased 4% year over year to $2.2 billion.
Life’s adjusted operating loss was $6 million against earnings of $9 million in the year-ago reported quarter. It reflected a lower underwriting margin and lower net investment income, partially offset by lower expenses. Life insurance sales decreased 11% quarter over quarter to $32 million.
Adjusted operating loss at Run-off was $48 million, narrower than the year-ago loss of $64 million. It reflects a higher underwriting margin and lower expenses.
Corporate & Other incurred an adjusted operating loss of $31 million, wider than the year-ago loss of $24 million, reflecting lower net investment income, partially offset by a higher tax benefit.
Financial Update of BHF
Cash and cash equivalents were $4.9 billion, up 5.1% year over year.
Shareholders’ equity of $5.5 billion at the end of the first quarter of 2026 increased 6.2% year over year. Book value per share, excluding accumulated other comprehensive income, was $139.63 as of March 31, 2026, down 1.6% year over year. Statutory combined total adjusted capital was $5 billion as of March 31, 2026, down 9.1% year over year. As of March 31, 2026, the estimated combined risk-based capital ratio was between 430% and 450%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Brighthouse Financial has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. However, the stock has a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Brighthouse Financial has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Brighthouse Financial, Inc. (BHF): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).