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MetLife Inc. is optimistic about its earnings for the year despite the $11.5 billion cost of its pending acquisition of Travelers Life & Annuity.[@@]
MetLife, New York, is reporting $987 million in net income for the first quarter on $10 billion in revenue, up from $598 million in net income on $9.4 billion in revenue for the first quarter of 2004.
MetLife seems to be rosier about future earnings because it has managed to finance most of the Travelers Life deal by borrowing money, selling preferred stock and using other relatively inexpensive sources of cash, according to Andrew Kligerman, an analyst at UBS Investment Research, New York.
MetLife is issuing just $1 billion of new common stock, Kligerman notes in a comment on MetLife's first-quarter earnings.
"The less expensive financing mix is likely a key driver of Met's more positive 2005 and 2006 [earnings per share] outlook," Kligerman writes in the comment.
In other earning news:
- Lincoln National Corp., Philadelphia, is reporting $179 million in net income for the first quarter on $1.3 billion in revenue for the first quarter compared with $130 million in net income on $1.3 billion in revenue for the first quarter of 2004.
- Nationwide Financial Services Inc., Columbus, Ohio, is reporting $161 million in net income for the first quarter on $1.1 billion in revenue, compared with $120 million in net income on $1 billion in revenue for the first quarter of 2004.
- Prudential Financial Inc., Newark, N.J., is reporting $766 million in net income on $5.6 billion in revenue for the first quarter, compared with $290 million in net income on $4.6 billion in revenue for the first quarter of 2004.
- Principal Financial Group Inc., Des Moines, is reporting $206 million in net income for the first quarter on $2.1 billion in revenue for the first quarter, compared with $194 million in net income on $2 billion in revenue for the first quarter of 2004.
