Why Is Globe Life (GL) Down 2.4% Since Last Earnings Report?

A month has gone by since the last earnings report for Globe Life (GL). Shares have lost about 2.4% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Globe Life due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.Globe Life Q4 Earnings Miss Estimates on Higher ExpensesGlobe Life Inc.’s fourth-quarter 2025 net operating income of $3.39 per share missed the Zacks Consensus Estimate by 1.4%. The bottom line improved 8% year over year, primarily driven by higher insurance underwriting income.Behind the HeadlinesGlobe Life reported total premium revenues of $1.2 billion, up 5% year over year. This upside was primarily driven by higher premiums from Life and Health insurance. Net investment income remains relatively flat year over year to $281.4 million.The company reported operating revenues of $1.5 billion, up 4% from the year-ago quarter. The improvement was driven by growth in Life and Health insurance premiums, and higher other income. The top line missed the Zacks Consensus Estimate by 0.7%. Excess investment income, a measure of profitability, decreased 20% year over year to $30.8 million.Total insurance underwriting income increased 6% year over year to $359.7 million. The increase was due to higher Life and Health underwriting income.Administrative expenses were up 0.9% year over year to $92.2 million. Total benefits and expenses increased 3.1% year over year to $1.2 billion, primarily due to higher policyholder benefits, amortization of deferred acquisition costs and commissions, premium taxes, and non-deferred acquisition costs.Segmental ResultsPremium revenues at Life increased 3% year over year to $849.6 million, driven by higher premiums written by distribution channels like American Income and Liberty National. American Income and Liberty National rose 6% and 4%, respectively. Net sales of $161.1 million increased 11% year over year. Underwriting margins increased 4% year over year to $350.4 million.Health insurance premium revenues rose 9% year over year to $392.3 million, primarily driven by higher premiums from United American, Family Heritage, American Income and Direct to Consumer. Net health sales increased 71% year over year to $125.7 million. Underwriting margins increased 9% year over year to $98.9 million.Financial UpdateShareholders’ equity, excluding accumulated other comprehensive income (AOCI), as of Dec 31, 2025, increased 5.6% year over year to $7.75 billion.As of Dec 31, 2025, Globe Life reported book value per share, excluding AOCI, of $96.16, up 11.2% year over year. Operating return on equity, excluding AOCI, was 16% for the twelve months ended Dec 31, 2025, which expanded 90 basis points year over year.Share RepurchaseGlobe Life repurchased shares worth $170 million in the reported quarter.2026 ViewGL estimates net operating income between $14.95 and $15.65 for the year ending Dec. 31, 2026, up from the previous guidance. How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.VGM ScoresAt this time, Globe Life has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions indicates a downward shift. It comes with little surprise Globe Life has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Globe Life Inc. (GL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks