Financial services giant Prudential Financial (NYSE:PRU) will be reporting results this Tuesday after market hours. Here’s what to look for.
Prudential missed analysts’ revenue expectations last quarter, reporting revenues of $13.56 billion, up 3.8% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ net premiums earned estimates but a significant miss of analysts’ book value per share estimates.
Is Prudential a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Prudential’s revenue to decline 9.6% year on year, improving from the 19.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Prudential has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Prudential’s peers in the insurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. CNO Financial Group delivered year-on-year revenue growth of 4.5%, missing analysts’ expectations by 15.2%, and Globe Life reported revenues up 6%, in line with consensus estimates. CNO Financial Group traded up 4.5% following the results while Globe Life’s stock price was unchanged.
Read our full analysis of CNO Financial Group’s results here and Globe Life’s results here.
There has been positive sentiment among investors in the insurance segment, with share prices up 5.2% on average over the last month. Prudential is up 1.2% during the same time and is heading into earnings with an average analyst price target of $107.53 (compared to the current share price of $114.86).
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