Prudential Financial Earnings: Here’s Why Shares are Up Now

Prudential Financial, Inc. (NYSE:PRU) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.42%.

Prudential Financial, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 74.24% to $2.30 in the quarter versus EPS of $1.32 in the year-earlier quarter.

Revenue: Decreased 27.35% to $11.72 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Prudential Financial, Inc. reported adjusted EPS income of $2.30 per share. By that measure, the company beat the mean analyst estimate of $1.99. It missed the average revenue estimate of $12.2 billion.

Quoting Management: “We are pleased to report strong results for the second quarter and first half of the year, driven by solid earnings growth in each of our Divisions. In the U.S., our market-leading pension risk transfer transactions late last year contributed to record-high earnings for the quarter in the Retirement business. We are continuing to benefit from the quality book of business, talented staff, and expanded distribution that came to us with our acquisition of The Hartford’s individual life insurance business in January, with integration well on track. Our International Insurance business continues to perform well, building on a sustained track record of success based on delivering protection and retirement solutions tailored to clients’ financial security needs over a lifetime,” said Chairman and Chief Executive Officer John Strangfeld.

Key Stats (on next page)…

Revenue increased 15.1% from $10.19 billion in the previous quarter. EPS increased 0.88% from $2.28 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $2.02 to a profit $2.03. For the current year, the average estimate has moved up from a profit of $8.21 to a profit of $8.37 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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