Financial services giant Prudential Financial (NYSE:PRU) will be reporting results this Tuesday afternoon. Here’s what you need to know.
Prudential met analysts’ revenue expectations last quarter, reporting revenues of $14.52 billion, up 11.6% year on year. It was a slower quarter for the company, with a significant miss of analysts’ book value per share estimates and a significant miss of analysts’ EPS 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 grow 5% year on year, a reversal from the 38.2% 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 to 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 life insurance segment, some have already reported their Q1 results, giving us a hint as to what we can expect. CNO Financial Group delivered year-on-year revenue growth of 8.5%, beating analysts’ expectations by 3.2%, and Unum Group reported revenues up 1.9%, topping estimates by 8.9%. CNO Financial Group’s stock price was unchanged after the resultswhile Unum Group was up 4.5%.
Read our full analysis of CNO Financial Group’s results here and Unum Group’s results here.
There has been positive sentiment among investors in the life insurance segment, with share prices up 3.2% on average over the last month. Prudential’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $99.47 (compared to the current share price of $98.63).
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