2023-07-31 12:25:13 ET
Prudential Financial ( NYSE: PRU ) is scheduled to announce Q2 earnings results on Tuesday, August 1st, after market close.
The consensus EPS estimate is $3.01 (+73.0% Y/Y) and the consensus revenue estimate is $12.65B.
Over the last 2 years, PRU has beaten EPS estimates 63% of the time.
Over the last 3 months, EPS estimates have seen 4 upward revisions and 8 downward revisions. Revenue estimates have seen 2 upward revisions and 4 downward revisions.
Past results :
Q1 non-GAAP EPS of $2.66 missed by $0.26.
"Our first quarter operating earnings reflect underlying business growth, including the benefits from a higher interest rate environment, offset by lower variable investment and fee income, and elevated seasonal mortality experience," CEO Charles Lowrey had said .
Peer performance :
Principal Financial Group's ( PFG ) Q2 non-GAAP EPS of $1.53 missed by $0.12. The company's earnings were hit by pressured net cash flows and weak results from three of its segments.
Principal Global Investors operating revenue declined 16.1% Y/Y due to lower performance and management fees. Retirement and Income Solutions net revenue slipped 1.8% Y/Y due to lower variable investment income. Life Insurance pre-tax operating earnings dropped 62.1% Y/Y, hurt by lower net investment income.
Dividend :
The life and health insurer has consistently raised its quarterly dividend every year, having increased it by 4.2% after Q4'22 results.
Prudential Financial has one of the most favorable dividend yields among its peers, but its profitability has been significantly lower on average. The company's high dividend yield is offset by its conservative share repurchases and weak as well as cyclical underlying performance in EPS over the past 10 years, according to Seeking Alpha contributor Philip Eriksson.
Ratings :
SA analysts and the Quant Rating system give the stock a Buy rating, while the sell-side analysts give the stock a Hold rating, with an average price target of $95.17.
Financials :
The stock is currently trading at $96.38, and the last reported book value/share is $85.78.
PRU's five-year EBITDA margin is 6.68%, while the financials sector median is -97.24%. The return on common equity is 5.77%, and the sector median is -77.87%.
Here is a look at the company's share price movements YTD:
For further details see:
Prudential Financial to report Q2 earnings tomorrow