Prudential Financial Inc. Earnings: Swing to a Loss After Two Straight Profit Quarters

S&P 500 (NYSE:SPY) component Prudential Financial Inc. (NYSE:PRU) reported its results for the first 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 First Quarter

Results: Reported a loss of $988 million ($2.09 per diluted share) in the quarter. The insurance-multiline had net income of $539 million or $1.10 per share in the year-earlier quarter.

Revenue: Revenue was $10.65 billion last quarter.

Actual vs. Wall St. Expectations: Prudential Financial Inc. reported adjusted net income of $1.56 per share. By that measure, the company fell short of mean estimate of $1.71 per share. Analysts were expecting revenue of $10.48 billion.

Quoting Management: “While our results for the first quarter reflect fluctuations in claims experience, expense levels, and market-driven items, our business fundamentals remain solid and we are continuing to grow quality business and build our franchises in attractive markets. In our U.S. businesses, we reached record-high levels of annuity and retirement account values, driven by our solid value propositions and demonstrated commitment to clients, their advisors and our distribution partners. Assets under management in our Asset Management business also reached a record high, reflecting strong institutional and retail flows. Our International Insurance business continues to perform well, registering record-high sales for the quarter as we are benefiting from expanding distribution across multiple channels serving the protection and retirement markets. We are beginning to realize significant cost synergies, consistent with our targets, as the integration of the Star and Edison businesses remains on track,” said Chairman and Chief Executive Officer John Strangfeld.

Key Stats:

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.97 versus a mean estimate of net income of $1.76 per share.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past month, the average estimate for the second quarter has gone up from $1.73 per share to $1.74. In the last thirty days, the average estimate for the fiscal year has moved up from $6.99 per share to $7.10.

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

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