Prudential Financial Earnings Cheat Sheet: Second Straight Quarterly Profit Drop

S&P 500 (NYSE:SPY) component Prudential Financial, Inc. (NYSE:PRU) reported its results for the first quarter. Prudential Financial, Inc. offers a wide range of financial products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management and real estate services.

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Prudential Financial Earnings Cheat Sheet for the First Quarter

Results: Net income for the life insurance company fell to $608 million ($1.20/share) vs. $697 million ($1.15/share) a year earlier. A decline of 12.8% from the year earlier quarter.

Revenue: Revenue was $7.19 billion last quarter.

Actual vs. Wall St. Expectations: PRU reported adjusted net income of $1.69 per share. By that measure, the company beat the mean analyst estimate of $1.48/share. Estimates ranged from $1.28 per share to $1.60 per share.

Quoting Management: “We are pleased with our strong first quarter results, driven by solid performance in our U.S. annuities and asset management businesses and our international insurance operations. Our financial strength, market commitment, and attractive value propositions have bolstered our competitive position, especially in the U.S. retirement and international protection and retirement markets, driving strong sales and flows in our businesses. We continue to focus on building high value-added business with favorable return prospects over market cycles by offering innovative solutions in these markets, where we see strong growth potential. In Japan, we’ve strengthened our franchise as a market-leading foreign life insurer with the addition of the Star and Edison businesses in February. We welcome more than three million clients, over 7,000 new Life Advisors, and valued new bank and independent agency distribution partners as we expand our commitment to the Japanese market where we have enjoyed success for more than 20 years based on serving lifetime financial security needs. Our thoughts are with our clients and associates in Japan who continue to deal with the effects of the earthquake and tsunami disaster in March, and we are especially grateful to our dedicated associates who continued to serve our clients and their communities through these tragic events,” said Chairman and Chief Executive Officer John Strangfeld.

Key Stats: The company has now seen net income fall in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 90.5% from the year earlier quarter.

Competitors to Watch: MetLife, Inc. (NYSE:MET), ING Groep N.V. (NYSE:ING), Prudential Public Ltd. Co. (NYSE:PUK), Torchmark Corporation (NYSE:TMK), Lincoln National Corp. (NYSE:LNC), StanCorp Financial Group, Inc. (NYSE:SFG), Delphi Financial Group, Inc. (NYSE:DFG), Primerica, Inc. (NYSE:PRI), AFLAC Incorporated (NYSE:AFL), American International Group (NYSE:AIG), Bank of America (NYSE:BAC), Citigroup (NYSE:C), JPMorgan (NYSE:JPM), Wells Fargo (NYSE:WFC) and CNO Financial Group, Inc. (NYSE:CNO).

Stock Performance: Shares of PRU are trading at $62 as of May 5, 2011 at 7:00 AM ET, down .69% from the previous closing price of $62.43.


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