We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Prudential (PRU) to Report Q4 Earnings: What's in the Cards?
Read MoreHide Full Article
Prudential Financial, Inc. (PRU - Free Report) is slated to report fourth-quarter 2019 results on Feb 4, after market close.
Factors to Consider
Prudential’s fourth-quarter performance is likely to have benefited from growth in asset-based businesses, improved margins in Group Insurance business, solid international operations and deeper reach in the pension risk transfer market.
The retirement business is expected to have benefited from a solid pension risk transfer pipeline.
U.S. Financial Wellness is likely to have benefited from advice, investment, and retirement income and protection solutions, thus aiding full-service retirement plan sales and Group Insurance sales.
Growing Japan business, leadership position in Japan life insurance market and businesses in Brazil, Chile, Indonesia, India, China and Africa are likely to have aided the International Insurance segment.
Revenues are expected to have been boosted by increase in recurring premium sales, expanded product offerings, broader distribution capabilities, policy charges as well as fee income. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $14.23 billion, which implies a decline of 19.8% from the figure reported in the year-ago quarter.
However, expenses are likely to have increased attributable to higher interest credited to policyholders' account balances, interest expense, amortization of acquisition costs, and general and administrative expenses. This might have caused margin contraction.
Lower interest rate is likely to have weighed on reinvestment rates, thus suggesting lower net investment income.
Continued share buybacks might have provided additional upside to the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at $2.01, indicating 17.6% decrease from the year-ago quarter’s reported figure.
The company delivered a positive earnings surprise in the third quarter of 2019.
Our proven model predicts an earnings beat for Prudential 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 has an Earnings ESP of +0.16%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Prudential currently carries a Zacks Rank #3.
Other Stocks to Consider
Some other stocks from the insurance industry with the apt combination of elements to surpass estimates this reporting cycle are as follows:
Lincoln National Corporation (LNC - Free Report) has an Earnings ESP of +0.54% and a Zacks Rank of 2.
MetLife, Inc. (MET - Free Report) has an Earnings ESP of +0.57% and a Zacks Rank of 2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
Prudential (PRU) to Report Q4 Earnings: What's in the Cards?
Prudential Financial, Inc. (PRU - Free Report) is slated to report fourth-quarter 2019 results on Feb 4, after market close.
Factors to Consider
Prudential’s fourth-quarter performance is likely to have benefited from growth in asset-based businesses, improved margins in Group Insurance business, solid international operations and deeper reach in the pension risk transfer market.
The retirement business is expected to have benefited from a solid pension risk transfer pipeline.
U.S. Financial Wellness is likely to have benefited from advice, investment, and retirement income and protection solutions, thus aiding full-service retirement plan sales and Group Insurance sales.
Growing Japan business, leadership position in Japan life insurance market and businesses in Brazil, Chile, Indonesia, India, China and Africa are likely to have aided the International Insurance segment.
Revenues are expected to have been boosted by increase in recurring premium sales, expanded product offerings, broader distribution capabilities, policy charges as well as fee income. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $14.23 billion, which implies a decline of 19.8% from the figure reported in the year-ago quarter.
However, expenses are likely to have increased attributable to higher interest credited to policyholders' account balances, interest expense, amortization of acquisition costs, and general and administrative expenses. This might have caused margin contraction.
Lower interest rate is likely to have weighed on reinvestment rates, thus suggesting lower net investment income.
Continued share buybacks might have provided additional upside to the bottom line.
The Zacks Consensus Estimate for earnings per share is pegged at $2.01, indicating 17.6% decrease from the year-ago quarter’s reported figure.
The company delivered a positive earnings surprise in the third quarter of 2019.
Prudential Financial, Inc. Price and EPS Surprise
Prudential Financial, Inc. price-eps-surprise | Prudential Financial, Inc. Quote
What Our Model Says
Our proven model predicts an earnings beat for Prudential 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 has an Earnings ESP of +0.16%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Prudential currently carries a Zacks Rank #3.
Other Stocks to Consider
Some other stocks from the insurance industry with the apt combination of elements to surpass estimates this reporting cycle are as follows:
RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +18.32% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lincoln National Corporation (LNC - Free Report) has an Earnings ESP of +0.54% and a Zacks Rank of 2.
MetLife, Inc. (MET - Free Report) has an Earnings ESP of +0.57% and a Zacks Rank of 2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>