Tuesday was not a very sunny day brighthouse financial's (BHF -12.76%) Existence. The company's stock price plummeted nearly 13% following its latest earnings release. The decline was much more pronounced than the economic decline. S&P500 The index was relatively low at 1.4%.
Fourth quarter numbers were lower than expected
Brighthouse released its fourth quarter numbers shortly after the market closed on Monday. These revealed that the pension and insurance products specialist made his $1.4 billion profit. This was a significant improvement over his $127 million shortfall due to significant derivative losses in the same quarter of 2022.
Meanwhile, non-GAAP (generally accepted accounting principles) adjusted earnings declined significantly. The company's net income was $189 million ($2.92 per share), notably lower than its adjusted net income of $282 million in the fourth quarter of 2022.
Both headline numbers fell short of analysts' average expectations. The consensus forecast from experts backing Brighthouse stock was for total sales of more than $2.1 billion and adjusted net income of more than $3.69 per share.
Brighthouse said in its earnings call that its performance was due to a reduction in the value of hedges due to market performance.
No guidance provided, but optimistic for coming months
Brighthouse offered no guidance, but management made hopeful statements about its future. The company quoted CEO Eric Steigerwald as saying, “Our strong balance sheet, liquidity, and 2023 results position us well for the future.'' I believe that.''
Eric Volkman has no position in any stocks mentioned. The Motley Fool has no position in any stocks mentioned. The Motley Fool has a disclosure policy.
