Prudential Financial Earnings: Swings to a Loss, Missing Expectations

S&P 500 (NYSE:SPY) component Prudential Financial Inc. (NYSE:PRU) swung to a loss in the third quarter, missing analysts’ forecast. Prudential Financial 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 Inc. Earnings Cheat Sheet

Results: Reported a loss of $661 million ($1.41 per diluted share) in the quarter. The insurance-multiline had net income of $1.56 billion or $3.18 per share in the year-earlier quarter.

Revenue: Rose 35.6% to $13.25 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Prudential Financial Inc. fell short of the mean analyst estimate of $1.67 per share. It beat the average revenue estimate of $10.48 billion.

Quoting Management: “Our current quarter results benefited from solid performance across our businesses. In our U.S. businesses, solid sales and net flows are driving organic growth of quality business virtually across the board. Our recently announced agreement to acquire The Hartford’s individual life insurance business, together with two major ground breaking pension risk transfer transactions, will complement our organic growth, enhancing our leadership positions in attractive markets and contributing toward achievement of our longer term objectives. Our international insurance business continues to perform well, building on success in serving protection and retirement needs through multiple distribution channels,” said Chairman and Chief Executive Officer John Strangfeld.

Key Stats:

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 21 cents in the second quarter and by 15 cents in the first quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.73 a share to $1.74 over the last thirty days. The average estimate for the fiscal year is $6.33 per share, down from $6.38 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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