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 1.38%.

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Prudential Financial, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 46.15% to $2.28 in the quarter versus EPS of $1.56 in the year-earlier quarter.

Revenue: Rose 22.98% to $11.83 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Prudential Financial, Inc. reported adjusted EPS income of $2.28 per share. By that measure, the company beat the mean analyst estimate of $1.89. It missed the average revenue estimate of $12.42 billion.

Quoting Management: “Our outstanding first quarter results, reflecting solid earnings growth in each of our Divisions, give us a strong start toward achievement of our objectives for the year, and we are continuing to build our base of high quality business with strong sales and flows virtually across the board. Our U.S. Retirement business reported record-high earnings, driven by the first full quarter contribution of the landmark pension risk transfer transactions we completed late last year. We’ve strengthened our franchise as a leading U.S. life insurer with our acquisition of The Hartford’s individual life insurance business in January, and we are pleased to welcome valued distribution partners, talented staff, and over 650,000 new clients to Prudential. Our International Insurance business continues to perform well, with record-high earnings in the quarter and strong sales across multiple distribution channels,” said Chairman and Chief Executive Officer John Strangfeld.

Key Stats (on next page)…

Revenue decreased 74.22% from $45.91 billion in the previous quarter. EPS increased 34.91% from $1.69 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.95 and has not changed. For the current year, the average estimate has moved down from a profit of $7.88 to a profit of $7.87 over the last ninety days.

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