Valued at a market cap of $9.5 billion, Globe Life Inc. (GL) provides various life and supplemental health insurance products, as well as annuities to lower middle- and middle-income families. The McKinney, Texas-based company is expected to announce its fiscal Q4 earnings results after the market closes on Wednesday, Feb. 5.
Prior to this event, analysts expect the insurance company to report a profit of $3.10 per share, up 10.7% from $2.80 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. In Q3, GL’s adjusted EPS of $3.49 outpaced the forecasted figure by a significant margin of 14.4%.
For fiscal 2024, analysts expect Globe Life to report an EPS of $12.32, up 15.7% from $10.65 in fiscal 2023.
Shares of GL have declined 6% over the past 52 weeks, massively underperforming both the S&P 500 Index's ($SPX) 22% rise and the Financial Select Sector SPDR Fund’s (XLF) 26.8% return over the same time frame.
The main reason behind Globe Life's underperformance last year is a report released in April that alleged that the company had engaged in misconduct and fraud. Shares of GL plunged 1.3% after its Q3 earnings release on Oct. 23 as the company’s revenues of $1.5 billion, which increased 5% from the year-ago quarter, slightly missed the Wall Street estimates. On the other hand, its adjusted EPS of $3.49 climbed 28.8% year-over-year and surpassed the estimates by a notable 14.4%.
Wall Street analysts are moderately optimistic about GL’s stock, with a "Moderate Buy" rating overall. Among 11 analysts covering the stock, seven recommend a "Strong Buy," one suggests a “Moderate Buy,” and three indicate “Hold.” This configuration is slightly more bullish than three months ago, with six analysts suggesting a “Strong Buy.”
The average price target for GL is $133.36, which indicates an 18.1% potential upside from the current levels.
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