Here's What Analysts Are Forecasting For Lincoln National Corporation After Its Full-Year Results - Yahoo Finance

Investors in Lincoln National Corporation (NYSE:LNC) had a good week, as its shares rose 9.1% to close at US$59.46 following the release of its yearly results. Revenues came in 4.3% below expectations, at US$17b. Statutory earnings per share were relatively better off, with a per-share profit of US$4.38 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.

View our latest analysis for Lincoln National

NYSE:LNC Past and Future Earnings, February 9th 2020

After the latest results, the seven analysts covering Lincoln National are now predicting revenues of US$18.8b in 2020. If met, this would reflect a decent 8.9% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to bounce 131% to US$10.20. In the lead-up to this report, analysts had been modelling revenues of US$18.4b and earnings per share (EPS) of US$10.31 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$70.77, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Lincoln National at US$81.00 per share, while the most bearish prices it at US$63.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.

Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. It's clear from the latest estimates that Lincoln National's rate of growth is expected to accelerate meaningfully, with forecast 8.9% revenue growth noticeably faster than its historical growth of 5.5%p.a. over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 2.0% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Lincoln National is expected to grow much faster than its market.

The Bottom Line

The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at US$70.77, with the latest estimates not enough to have an impact on analysts' estimated valuations.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Lincoln National going out to 2022, and you can see them free on our platform here.