MetLife rises on strong preliminary Q4 results, anticipates acquisitions

For the full year 2009, MetLife foresees operating earnings between $2.3 billion and $2.4 billion ($2.81 to $2.86 per share) on revenue between $33.2 billion and $33.8 billion. That compares with $2.7 billion ($3.62 per share) earnings on $32.9 billion revenue in 2008.

The consensus forecast of analysts surveyed by Thomson Reuters was for EPS of $0.90 for the fourth quarter and $2.85 for the full year. MetLife has only fallen short of estimates in one of the past five quarters.

C. Robert Henrikson, Metlife's chairman, president and chief executive officer, said, "In 2010, we expect operating earnings to grow approximately 50% over 2009 to between $3.3 billion and $3.6 billion, or $4.00 to $4.40 per share." The earnings rebound is credited to improved investment margins and higher premium revenue.

In an Investor's Day conference call Monday, Henrikson also said MetLife is in a good position to take advantage of opportunities to make acquisitions of insurance properties, such as those of American International Group Inc. (AIG), which is under pressure to repay its government bailout.

MetLife's long-term EPS growth forecast is 11.4%, which is a better than that of competitor Prudential Financial Inc. (PRU). MetLife's earnings multiple is 9.1x, and the First Call consensus recommendation is to buy MET.

Shares hit an intraday high of $36.79 Monday, but closed at $35.68, up 35 cents, or about 1%, and were sharply lower after Tuesday's open.

MetLife is scheduled to release its fourth quarter and full-year 2009 financial results on February 2, 2010.