Tuesday wasn't the sunniest day in Brighthouse Financial's (BHF 0.13%) existence. The company saw its share price crater by almost 13%, on the back of its latest earnings release. That slide was much more pronounced than the decline of the S&P 500 index, which was a relatively modest 1.4%.
Fourth-quarter figures fell short of expectations
Brighthouse released its fourth-quarter figures just after market close on Monday. These revealed that the annuities and insurance products specialist earned $1.4 billion on the top line; this was a vast improvement over the $127 million shortfall -- due to significant derivative losses -- in the same quarter of 2022.
Non-GAAP (generally accepted accounting principles) adjusted earnings, on the other hand, saw quite the decline. The company netted $189 million ($2.92 per share) on the bottom line, notably below the $282 million adjusted net income of fourth quarter 2022.
Neither headline figure came close to approaching the average analyst estimates. The consensus projection by pundits following Brighthouse stock was over $2.1 billion for total revenue and $3.69 per share in adjusted net income.
In its earnings release, Brighthouse attributed its performance to the value of its hedges decreasing due to market performance.
NASDAQ: BHF
Key Data Points
No guidance provided, but optimistic for the coming months
Although Brighthouse did not proffer any guidance, management did sound a hopeful note about its future. The company quoted CEO Eric Steigerwalt as saying, "We believe that our strong balance sheet and liquidity, as well as our achievements in 2023, position us well for the future."
