Prudential Financial Inc. Earnings Cheat Sheet: Streak of Three Straight Profit Declines Snapped

S&P 500 (NYSE:SPY) component Prudential Financial Inc. (NYSE:PRU) reported its results for the third quarter. 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 Earnings Cheat Sheet for the Third Quarter

Results: Net income for the life insurance company rose to $1.53 billion ($3.06 per share) vs. $1.24 billion ($2.46 per share) in the same quarter a year earlier. This marks a rise of 23.3% from the year earlier quarter.

Revenue: Revenue was $14.92 billion last quarter.

Actual vs. Wall St. Expectations: PRU reported adjusted net income of $1.07 per share. By that measure, the company fell short of mean estimate of $1.56 per share. It beat the average revenue estimate of $10.13 billion.

Quoting Management: “While our third quarter results reflect the turbulent financial markets, underlying performance of our businesses was solid. In the U.S. retirement market, we are continuing to build a base of business that can perform well across market cycles. Our international businesses are benefiting from growth in the protection and retirement income security markets with expanding multiple channel distribution, and the integration of the Star and Edison businesses we acquired earlier this year continues on track. Unsettled economic times provide an opportunity for the strongest companies to grow, as clients, advisors and distributors seek a trusted financial partner, and we believe our financial strength and sustained commitment to our selected markets are serving us well, both in the U.S. and in our international markets. Looking forward, we are confident that we can continue to execute our strategies successfully, and we believe our balanced mix of businesses and risks support our ability to achieve our long term objectives over a variety of market conditions,” said Chairman and Chief Executive Officer John Strangfeld.

Key Stats:

Last quarter’s profit increase breaks a streak of three consecutive quarters of year-over-year profit decreases. In the second quarter, net income fell 22.2% from the year earlier, while the figure dropped 12.8% in the first quarter and 90.5% in the fourth quarter of the last fiscal year.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 16 cents, and in the first quarter, it was ahead by 21 cents.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.73 per share, down from $1.76 ninety days ago. For the fiscal year, the average estimate has moved down from $6.80 a share to $6.69 over the last thirty days.

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), and CNO Financial Group, Inc. (NYSE:CNO).

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(Source: Xignite Financials)

 

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