Here's What to Expect From Prudential Financial's Next…

Here's What to Expect From Prudential Financial's Next Earnings Report

Newark, New Jersey-based Prudential Financial, Inc. (PRU) provides insurance, investment management, and other financial products and services worldwide. With a market cap of $45.7 billion, it operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Business segments. The insurance giant is expected to release its Q3 earnings after the market closes on Wednesday, Oct. 30.

Ahead of the event, analysts expect Prudential Financial to report a profit of $3.47 per share, marginally up from $3.44 per share reported in the year-ago quarter. The company has exceeded Wall Street’s adjusted EPS projections in one of the past four quarters while missing the estimates on three other occasions. Its adjusted EPS for the last reported quarter grew 15.3% year-over-year to $3.39 but missed the estimates by 1.2%.

For fiscal 2024, analysts expect PRU to report an adjusted EPS of $13.30, up 14.5% from $11.62 in fiscal 2023.

PRU has gained 22.8% on a YTD basis, lagging behind the S&P 500 Index’s ($SPX) 23% gains and the Financial Select Sector SPDR Fund’s (XLF) 26.7% returns during the same time frame.

Shares of Prudential Financial plummeted nearly 10% following the release of its Q2 earnings on Aug. 1. Despite a robust 10.3% year-over-year growth in total revenues, reaching $14.9 billion, and a significant 13.2% increase in premiums to $7.8 billion, the company’s earnings fell short of expectations. While adjusted operating income before income taxes grew by 11.1% to $1.6 billion, it did not meet analysts' projections, prompting a sell-off in the stock.

The consensus opinion on PRU stock is cautious, with an overall “Hold” rating. Out of the 17 analysts covering the stock, two recommend “Strong Buy,” 13 advise “Hold,” and two suggest a “Strong Sell” rating. As of writing, PRU is trading above its mean price target of $124.40.

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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