Yahoo Finance Will Prudential (PRU) Pull Off a Surprise in Q4 Earnings?
Prudential Financial, Inc. PRU is slated to report fourth-quarter 2022 earnings on Feb 7, after market close. PRU delivered an earnings surprise in two of the last four quarters and missed in the other two, the average being 3.64%.
Factors to Consider
The U.S. business is likely to have been affected by lower net investment spread results, lower fee income, net of distribution expenses and other associated costs and unfavorable equity markets. The downside is likely to have been partially offset by higher underwriting results and favorable disability results in Group Insurance business and favorable mortality experience in Individual Life business.
Prudential Financial’s international businesses are likely to have been affected by unfavorable net impact from foreign currency exchange rates, lower underwriting results and lower net investment spread results.
Group Insurance business in the to-be-reported quarter is likely to have benefited from higher national account life and disability sales and execution of product growth strategy to drive supplemental health as well as higher underwriting results.
PGIM is likely to have decreased due to lower net asset management fees and higher operating and compensation expenses.
Assets under management is likely to have been affected by market depreciation, reflecting higher interest rates and credit spreads as well as unfavorable equity markets.
Net investment income is likely to have decreased in the to-be-reported quarter due to lower income on non-coupon investments.
Expenses are likely to have increased because of higher policyholders’ benefits.
The Individual Retirement Strategies business is likely to have decreased in the to-be-reported quarter due to lower fee income, net of distribution expenses and other associated costs, unfavorable equity markets and net outflows. The downside is likely to have been partially offset by higher net investment spread results and lower expenses.
Individual life sales are likely to have decreased in the to-be-reported quarter due to lower net investment spread results. The downside is likely to have been partially offset by higher underwriting results.
Prudential estimates earnings per share to be $2.96 for the fourth quarter of 2022.
The Zacks Consensus Estimate for earnings per share is pegged at $2.57, indicating a decline of 19.2% from the year-ago period reported figure. The Zacks Consensus Estimate for revenues is pegged at $12.8 billion, indicating a decline of 6.9% from the year-ago reported figure.
What Our Quantitative Model Unveils
Our proven model predicts an earnings beat for PRU this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Prudential Financial has an Earnings ESP of +0.46%. This is because the Most Accurate Estimate of $2.58 is pegged higher than the Zacks Consensus Estimate of $2.57. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Prudential Financial, Inc. Price and EPS Surprise
Prudential Financial, Inc. price-eps-surprise | Prudential Financial, Inc. Quote
Zacks Rank: Prudential Financial has a Zacks Rank #2 . You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some insurance stocks also with the right combination of elements to come up with an earnings beat this time around are:
American International Group, Inc. AIG has an Earnings ESP of +5.73% and a Zacks Rank of 2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at $1.19 per share, indicating a decrease of 24.7% from the year-ago reported figure.
AIG’s earnings beat estimates in three of the last four reported quarters while missing in one.
CNO Financial Group, Inc. CNO has an Earnings ESP of +6.31% and a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at a loss of 56 cents per share, indicating a decrease of 35.6% from the year-ago reported figure.
CNO’s earnings beat estimates in three of the last four reported quarters while missing in one.
MetLife, Inc. MET has an Earnings ESP of +0.43% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at $1.94, indicating a decrease of 6.7% from the year-ago reported figure.
MET’s earnings beat estimates in three of the last four reported quarters while missing in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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American International Group, Inc. (AIG) : Free Stock Analysis Report
CNO Financial Group, Inc. (CNO) : Free Stock Analysis Report
MetLife, Inc. (MET) : Free Stock Analysis Report
Prudential Financial, Inc. (PRU) : Free Stock Analysis Report
