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Prudential (PRU) to Report Q3 Earnings: What's in the Offing?
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Prudential Financial, Inc. (PRU - Free Report) is slated to report third-quarter 2022 earnings on Nov 1, after market close. PRU delivered an earnings surprise in three of the last four quarters and missed in one, the average being 14.81%.
Factors to Consider
The U.S. business is likely to have been affected by lower spread income due to less favorable variable investment income and lower fee income, resulting from the decline in equity markets. The downside is likely to have been partially offset by favorable underwriting.
Prudential Financial’s international businesses are likely to have been affected by lower earnings from joint venture investments, lower net investment results and less favorable underwriting, partially offset by business growth.
Group Insurance business in the to-be-reported quarter is likely to have benefited from more favorable underwriting results, partially offset by lower net investment spread results.
PGIM is likely to have decreased due to lower net other related revenues, higher operating expenses and lower net asset management fees.
Assets under management are 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 due to higher policyholders’ benefits and amortization of deferred policy acquisition costs.
The Individual Retirement Strategies business is likely to have benefited from the sale of PALAC and market value gains on strategic investment, higher net investment spread results, growth in indexed variable annuities and lower operating expenses. The increase is likely to have been partially offset by lower policy charges and fee income, unfavorable equity markets and the reduction in account values resulting from the sale of PALAC.
Individual life sales are likely to have decreased in the to-be-reported quarter due to lower net spread results. The downside is likely to have been partially offset by more favorable underwriting.
Prudential estimates earnings per share to be $2.63 for the third quarter of 2022.
The Zacks Consensus Estimate for earnings per share is pegged at $2.21, indicating a decline of 41.5% from the year-ago period reported figure. The Zacks Consensus Estimate for revenues is pegged at $12.8 billion, indicating a decline of 35.1% from the year-ago reported figure.
What Our Quantitative Model Unveils
Our proven model does not conclusively predict an earnings beat for Prudential Financial this time around. A stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case as you can see below.
Earnings ESP: Prudential Financial has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.21. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:
EverQuote, Inc. (EVER - Free Report) has an Earnings ESP of +4.88% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at a loss of 41 cents, implying a decline of 127.8% from the figure reported in the year-ago quarter.
EverQuote beat earnings estimates in three of the last four reported quarters while missing the same in one.
Trean Insurance Group, Inc. has an Earnings ESP of +11.11% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 9 cents, indicating a decrease of 40% from the year-ago reported figure.
TIG beat earnings estimates in one of the last four reported quarters while missing the same in the other two and matched in one.
Enact Holdings, Inc. (ACT - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings stands at 89 cents, indicating an increase of 5.9% from the year-ago reported figure.
Enact Holdings’ earnings beat estimates in each of the four trailing quarters.
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Prudential (PRU) to Report Q3 Earnings: What's in the Offing?
Prudential Financial, Inc. (PRU - Free Report) is slated to report third-quarter 2022 earnings on Nov 1, after market close. PRU delivered an earnings surprise in three of the last four quarters and missed in one, the average being 14.81%.
Factors to Consider
The U.S. business is likely to have been affected by lower spread income due to less favorable variable investment income and lower fee income, resulting from the decline in equity markets. The downside is likely to have been partially offset by favorable underwriting.
Prudential Financial’s international businesses are likely to have been affected by lower earnings from joint venture investments, lower net investment results and less favorable underwriting, partially offset by business growth.
Group Insurance business in the to-be-reported quarter is likely to have benefited from more favorable underwriting results, partially offset by lower net investment spread results.
PGIM is likely to have decreased due to lower net other related revenues, higher operating expenses and lower net asset management fees.
Assets under management are 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 due to higher policyholders’ benefits and amortization of deferred policy acquisition costs.
The Individual Retirement Strategies business is likely to have benefited from the sale of PALAC and market value gains on strategic investment, higher net investment spread results, growth in indexed variable annuities and lower operating expenses. The increase is likely to have been partially offset by lower policy charges and fee income, unfavorable equity markets and the reduction in account values resulting from the sale of PALAC.
Individual life sales are likely to have decreased in the to-be-reported quarter due to lower net spread results. The downside is likely to have been partially offset by more favorable underwriting.
Prudential estimates earnings per share to be $2.63 for the third quarter of 2022.
The Zacks Consensus Estimate for earnings per share is pegged at $2.21, indicating a decline of 41.5% from the year-ago period reported figure. The Zacks Consensus Estimate for revenues is pegged at $12.8 billion, indicating a decline of 35.1% from the year-ago reported figure.
What Our Quantitative Model Unveils
Our proven model does not conclusively predict an earnings beat for Prudential Financial this time around. A stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case as you can see below.
Earnings ESP: Prudential Financial has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.21. 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 #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:
EverQuote, Inc. (EVER - Free Report) has an Earnings ESP of +4.88% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at a loss of 41 cents, implying a decline of 127.8% from the figure reported in the year-ago quarter.
EverQuote beat earnings estimates in three of the last four reported quarters while missing the same in one.
Trean Insurance Group, Inc. has an Earnings ESP of +11.11% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings is pegged at 9 cents, indicating a decrease of 40% from the year-ago reported figure.
TIG beat earnings estimates in one of the last four reported quarters while missing the same in the other two and matched in one.
Enact Holdings, Inc. (ACT - Free Report) has an Earnings ESP of +1.69% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2022 earnings stands at 89 cents, indicating an increase of 5.9% from the year-ago reported figure.
Enact Holdings’ earnings beat estimates in each of the four trailing quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.