NASDAQ$BHF

Brighthouse Financial Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Brighthouse Financial's first quarter results were announced, showing a significant net income and growth in annuity sales.

Brighthouse Financial reported a strong first quarter with a net income of $4,950 million, driven by net derivative mark-to-market gains. Adjusted earnings, less notable items, were $273 million, or $2.60 per diluted share. Annuity sales grew by 15% year-over-year, and the company repurchased approximately $316 million of its common stock year-to-date.

  • Net income available to shareholders was $4,950 million, or $47.11 per diluted share.
  • Adjusted earnings, less notable items, were $273 million, or $2.60 per diluted share.
  • Annuity sales increased by 15% compared to the first quarter of 2019.
  • The company's estimated combined risk-based capital ratio is between 515 and 535 percent.

Headline financials

Total Revenue

$8.99B

Previous: $691M+1200.3%
EPS (adj)

$2.60

Previous: $2.21+17.6%
Book Value Per Share

$198.62

No prior period
Book Value ex AOCI

$172.28

No prior period
Holding Company Liquid Assets

$1B

No prior period
Ending Common Shares Outstanding

100.5M

No prior period
Free Cash Flow

$4.96B

Previous: -$735M+774.4%
Net Income

$4.96B

Previous: -$735M+774.4%
Operating Income

$6.88B

Previous: -$1.1B+723.9%
Gross Profit

$7.4B

Previous: -$511M+1547.9%
Cash & Equivalents

$8.93B

Previous: $3.86B+131.1%
Total Assets

$224B

Previous: $216B+3.5%

Revenue & EPS history

Brighthouse Financial · Revenue · Quarterly

$8.99B

Q1 2020+1,200.3%vs Q1 2019
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Brighthouse Financial · $2.1B total across 4 segments · Q1 2020

  • Net Investment Income
    $916M
  • Universal Life & Policy Fees
    $886M
  • Premiums
    $198M
  • Other Revenues
    $102M

Forward guidance

Brighthouse Financial remains confident in its strategy and believes it will generate long-term shareholder value, despite the uncertainty caused by the COVID-19 pandemic.

Tailwinds

  • The company's top priority is the well-being and safety of employees, partners, and customers.
  • Business continuity plans were promptly implemented, transitioning to a fully remote-work environment.
  • The company is able to continue to support customers and financial professionals as usual.
  • The company entered the current climate from a position of strength.
  • The company's balance sheet and liquidity remain strong, and the investment portfolio is well-diversified.

Headwinds

  • The immediate future may be more difficult from a sales perspective.
  • It is not possible to estimate the severity or duration of the COVID-19 pandemic.
  • Repurchases temporarily suspended while the company continues to evaluate the impacts of the COVID-19 pandemic.
  • The company's statutory combined total adjusted capital decreased due to equity market and interest rate declines.
  • Unfavorable non-variable annuity results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.6%

Avg return

Earnings day

-0.2%

Avg return

5 days after

-2.5%

Avg return

30 days after

43%

16 / 37 earnings

Positive

+15.3%

Q4 2018

Best reaction

-11.5%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.5%-2.4%+0.1%
Q4 2025-1.3%-4.1%-3.3%
Q3 2025+0.5%+0.2%-0.5%
Q1 2025-0.8%+2.3%+1.5%
Q4 2024+0.0%+6.2%-4.9%
Q3 2024-4.5%-0.8%-3.5%
Q2 2024-4.1%-7.2%-3.9%
Q1 2024-9.8%-10.0%-15.5%
Q4 2023-11.5%-9.6%-9.6%
Q3 2023-2.8%-2.3%+9.2%
Q2 2023-6.2%-7.5%-9.6%
Q1 2023-2.5%-7.2%+6.0%
Q4 2022-1.0%+2.2%-16.6%
Q3 2022-6.8%-2.7%-5.5%
Q2 2022+2.9%+6.9%+6.9%
Q1 2022-9.3%-12.1%-5.8%
Q4 2021-3.6%-3.1%-22.3%
Q3 2021+1.2%-2.3%-8.2%
Q2 2021+13.6%+12.3%+17.3%
Q1 2021-0.9%+1.0%-5.4%
Q4 2020-3.4%-4.7%+6.3%
Q3 2020+0.6%+19.0%+19.7%
Q2 2020+3.5%+8.4%+9.3%
Q1 2020-6.2%-7.1%+20.9%
Q4 2019+10.4%+10.5%-43.1%
Q3 2019+5.1%+5.0%-1.8%
Q2 2019+3.4%+0.5%+1.4%
Q1 2019-4.9%-6.8%-13.1%
Q4 2018+15.3%+18.9%+9.4%
Q3 2018+7.6%+1.6%-5.2%
Q2 2018-0.6%-8.7%-5.5%
Q1 2018+1.1%-3.3%-5.9%
Q4 2017-6.0%-0.3%-7.5%
Q3 2017+0.5%-1.6%+6.9%
Q2 2017+0.2%+0.2%-3.0%
Q1 2017+0.2%+0.2%-3.0%
Q4 2016+0.2%+2.3%-3.8%
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015

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