MetLife faces earnings decline as projections lower

In the United States, MetLife (NYSE:MET) is preparing to release its earnings report on August 6, 2025. According to consensus estimates, the company is expected to report earnings of around $2.16 per share, a figure that is slightly lower than the same time last year. Revenue projections are also down, anticipated to be approximately $18.50 billion, reflecting a decline of about 1% year-over-year. This indicates that the company is facing pressures that may affect its overall profitability and growth. In the preceding quarter, MetLife reported an increase in life underwriting margins and growth in volume, alongside a rise in variable investment income. However, these positive outcomes were somewhat neutralized by negative impacts from foreign currency fluctuations and lower recurring interest margins. This trend of mixed performance may carry through to the upcoming earnings announcement. In addition, the ongoing weakness of the dollar poses potential challenges for further growth. Looking back over historical performance, it is noted that in the past five years there have been 20 instances of earnings announcements for MetLife, resulting in 8 positive and 12 negative one-day returns. Yet, when examining a more focused three-year period, the percentage of positive responses dropped to 33%. The median of positive returns was reported at 2.2% while negative returns averaged -1.8%. This suggests that traders and investors are becoming more cautious regarding the stock's potential for immediate positive returns following the announcement. Given these circumstances, traders might look for strategic entry points before the earnings announcement by comparing historical trends. They could position themselves based on pre-earnings setups or analyze correlations between returns that follow the earnings disclosure. Furthermore, it is important to consider how MetLife's stock performance may be influenced by the earnings results of its peers announcing their financials shortly before the company does, potentially setting a market tone. As earnings day approaches, stakeholders are encouraged to assess how MetLife's results compare with expectations. This comparison will ultimately determine the company's market response and influence future stock price behavior in the days following the earnings report.