雅虎香港財經 What's in Store for Prudential Financial (PRU) in Q1 Earnings?
Prudential Financial, Inc. PRU is slated to report first-quarter 2024 earnings on Apr 30, after market close. PRU delivered a negative earnings surprise in the last reported quarter.
Factors to Consider
The U.S. business is likely to have benefited from higher net investment spread results and lower expenses, partially offset by a decline in net fee income.
Prudential Financial’s international businesses are likely to have been affected by less favorable underwriting results, including unfavorable policyholder behavior. The downside is likely to have been partially offset by lower expenses.
Group Insurance business in the to-be-reported quarter is likely to have benefited from more favorable underwriting results in both group life and disability and lower expenses.
PGIM is likely to have decreased due to higher expenses and lower other related revenues, primarily due to a decline in incentive fees and agency income. The downside is likely to have been partially offset by higher asset management fees.
Assets under management are likely to have benefited from equity market appreciation and tightening credit spreads, partially offset by net outflows.
Net investment income is likely to have gained from higher reinvestment rates and growth in indexed variable annuities. The upside is likely to have been partially offset by lower income on non-coupon investments. We expect net investment income to increase 18.4% to $4.3 billion in the to-be-reported quarter.
Expenses are likely to have increased because of higher general and administrative expenses, amortization of deferred policy acquisition costs and interest credited to policyholders’ account balances. We expect total expenses to be $11.7 billion.
The Individual Retirement Strategies business is likely to have benefited from higher net investment spread results and lower expenses. The downside is likely to have been partially offset by lower fee income, net of distribution expenses and other associated costs.
The company estimates earnings per share to be $3.36 for the first quarter of 2024.
The Zacks Consensus Estimate for earnings per share is pegged at $3.16, indicating an increase of 18.8% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for revenues is pegged at $14.78 billion, indicating a decrease of 2.1% from the year-ago reported figure.
What Our Quantitative Model Unveils
Our proven model does not predict an earnings beat for Prudential Financial this time around. This is because 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) that increases the odds of an earnings beat. This is not the case here as you can see below.
Earnings ESP: Prudential Financial has an Earnings ESP of -0.88%. This is because the Most Accurate Estimate of $3.13 is pegged lower than the Zacks Consensus Estimate of $3.16. 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: PRU has a Zacks Rank #3 at present.
Stocks to Consider
Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Enact Holdings, Inc. ACT has an Earnings ESP of +5.05% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at 99 cents, indicating a decline of 8.3% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACT’s earnings beat estimates in each of the last four quarters.
Horace Mann Educators Corporation HMN has an Earnings ESP of +15.03% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at 77 cents, indicating an increase of 234.7% from the year-ago reported figure.
HMN’s earnings beat estimates in three of the last four quarters and matched in one.
Kemper Corporation KMPR has an Earnings ESP of +4.60% and sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at 87 cents, indicating an increase of 185.2% from the year-ago reported figure.
KMPR’s earnings beat estimates in three of the last four quarters and matched in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Prudential Financial, Inc. (PRU) : Free Stock Analysis Report
Enact Holdings, Inc. (ACT) : Free Stock Analysis Report
Kemper Corporation (KMPR) : Free Stock Analysis Report
Horace Mann Educators Corporation (HMN) : Free Stock Analysis Report
