NYSE$GL

Globe Life Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Globe Life's Q4 2022 earnings were reported, with net income at $2.14 per diluted common share and net operating income at $2.24 per diluted common share.

Globe Life Inc. reported a net income of $2.14 per diluted common share for Q4 2022, compared to $1.76 for the same quarter last year. Net operating income was $2.24 per diluted common share, up from $1.70 in the prior year. The company repurchased 489,708 shares during the quarter.

  • Net income was $2.14 per diluted common share, compared to $1.76 per diluted common share for the year-ago quarter.
  • Net operating income was $2.24 per diluted common share, compared to $1.70 per diluted common share for the year-ago quarter.
  • Life premiums increased 5% at the American Income Life Division and 4% at the Liberty National Division over the year-ago quarter.
  • Health premiums increased 7% and average producing agent count increased 12% at the Family Heritage Division over the year-ago quarter.

Headline financials

Total Revenue

$1.32B

Previous: $1.3B+2.0%
EPS (adj)

$2.24

Previous: $1.70+31.8%
Capital Expenditures

$8.16M

Previous: $7.51M+8.6%
Free Cash Flow

$364M

Previous: $370M-1.8%
Net Income

$212M

Previous: $178M+18.9%
Operating Income

$221M

Previous: $218M+1.4%
Gross Profit

$2.26B

Previous: $4.8B-52.9%
Cash & Equivalents

$92.6M

Previous: $92.2M+0.4%
Total Assets

$26B

Previous: $29.8B-12.7%
Stock-Based Comp

$35.7M

Previous: $30.3M+17.8%

Revenue & EPS history

Globe Life · Revenue · Quarterly

$1.32B

Q4 2022+2%vs Q4 2021
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Revenue by segment

Globe Life · $1.08B total across 2 segments · Q4 2022

  • Life Insurance
    $754M+2.8%
  • Health Insurance
    $324M+3.6%

Forward guidance

Globe Life projects net operating income between $10.20 to $10.50 per diluted common share for the year ending December 31, 2023. We estimate the impact of implementing the new accounting guidance results in an increase in net operating income in the range of $105 million to $115 million, primarily as a result of lower amortization of deferred acquisition costs.

Tailwinds

  • New accounting guidance related to long-duration insurance contracts is effective January 1, 2023.
  • Globe Life projects net operating income between $10.20 to $10.50 per diluted common share for the year ending December 31, 2023.
  • The new accounting guidance results in an increase in net operating income in the range of $105 million to $115 million.
  • Increase primarily as a result of lower amortization of deferred acquisition costs.
  • Liquidity at the Parent Company is sufficient to meet additional capital needs of the insurance companies.

Headwinds

  • Economic conditions leading to changes in lapse rates and/or sales of policies
  • Regulatory developments, including changes in accounting standards or governmental regulations
  • Market trends in the senior-aged health care industry that provide alternatives to traditional Medicare
  • Interest rate changes that affect product sales and/or investment portfolio yield
  • General economic, industry sector or individual debt issuers’ financial conditions that may affect the current market value of securities we own

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 Q4 2022

Historical avgQ4 2022

+0.3%

Avg return

Earnings day

+1.0%

Avg return

5 days after

+1.8%

Avg return

30 days after

51%

37 / 72 earnings

Positive

+13.5%

Q1 2024

Best reaction

-4.6%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.7%+0.9%+3.4%
Q4 2025+1.5%-2.0%-1.8%
Q3 2025-0.0%-0.9%-2.4%
Q2 2025-2.3%+0.4%+2.7%
Q1 2025-4.6%-2.4%-1.2%
Q4 2024-2.5%-1.3%+2.0%
Q3 2024-1.5%-5.0%-0.5%
Q2 2024-0.5%+2.8%+12.6%
Q1 2024+13.5%+13.5%+28.3%
Q4 2023+3.1%+4.2%+2.0%
Q3 2023+2.0%+1.9%+9.0%
Q2 2023-2.6%-1.7%-2.3%
Q1 2023-1.5%+0.8%-0.4%
Q4 2022-3.4%+0.5%-0.2%
Q3 2022-2.4%+0.8%+2.3%
Q2 2022-1.1%-1.5%-1.9%
Q1 2022+3.1%-0.6%-8.9%
Q4 2021-0.3%+1.0%-5.4%
Q3 2021-4.2%-4.9%-5.2%
Q2 2021-0.2%+0.8%+2.0%
Q1 2021-1.2%-0.8%+2.1%
Q4 2020-0.5%+2.6%+3.5%
Q3 2020+3.6%+0.5%+11.8%
Q2 2020+6.8%+5.8%+7.3%
Q1 2020+1.8%+11.9%-1.3%
Q4 2019+2.8%+3.0%-15.0%
Q3 2019+0.6%+0.9%+5.2%
Q2 2019+0.9%+0.6%-5.7%
Q1 2019+1.9%-0.0%+0.3%
Q4 2018-1.6%-2.9%-2.7%
Q3 2018-1.3%-1.3%+2.3%
Q2 2018+2.7%+4.3%+4.6%
Q1 2018+2.2%+1.8%+0.3%
Q4 2017-3.5%+0.1%+4.7%
Q3 2017+1.1%+1.5%+1.8%
Q2 2017+0.0%+0.2%-1.4%
Q1 2017+1.3%+3.0%-0.8%
Q4 2016+0.2%+1.2%+6.3%
Q3 2016-0.8%-0.5%+11.4%
Q2 2016+0.6%-0.6%+2.9%
Q1 2016+2.3%
Q4 2015-0.7%
Q3 2015-3.8%
Q2 2015-3.7%
Q1 2015+0.2%
Q4 2014+1.8%
Q3 2014-4.4%
Q2 2014-1.5%
Q1 2014+1.2%
Q4 2013-2.9%
Q3 2013-1.9%
Q2 2013+0.4%
Q1 2013+2.4%
Q4 2012-1.8%
Q3 2012-1.3%
Q2 2012-2.6%
Q1 2012-0.4%
Q4 2011-0.4%
Q3 2011-2.9%
Q2 2011-2.7%
Q1 2011+2.1%
Q4 2010+0.3%
Q3 2010-1.0%
Q2 2010+1.2%
Q1 2010+2.5%
Q4 2009+1.6%
Q4 2007+1.6%
Q3 2009+5.2%
Q3 2008+5.2%
Q2 2009+2.5%
Q2 2008+2.5%
Q4 2008+2.5%

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