BHF - Brighthouse's Dark Quarter
Introduction
Brighthouse Financial (BHF) has highly volatile results that the company tries to disguise by providing an adjusted figure excluding derivative gains/losses. In prior articles, I have shown that over time, the derivative losses are substantial and cannot be wished away. I developed a normalized annual EPS for the company of $4.50, much less than the $10 the company claims and analysts go along with.
The company’s recent results show that I may have been too optimistic. It has earned $0.45 per share over the last two years on a GAAP basis,