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Prudential Financial (PRU) Q1 Earnings: A Beat in the Cards?
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We expect Multi line insurer Prudential Financial, Inc. (PRU - Free Report) to beat expectations when it reports first-quarter 2017 results on May 3, after the market closes.
Why a Likely Positive Surprise?
Our proven model shows that Prudential Financial has the right combination of two key ingredients to beat estimates this quarter.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.38%. This is because the Most Accurate estimate of $2.65 is higher than the Zacks Consensus Estimate of $2.64. The positive ESP is a meaningful and leading indicator of a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Prudential Financial holds a Zacks Rank #2 (Buy). Please note that stocks with a Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating on earnings. The combination of Prudential Financial’s favorable Zacks Rank and positive Earnings ESP makes us reasonably confident of an earnings beat.
Conversely, the Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
What is Driving the Better-Than-Expected Earnings?
Prudential Financial is likely to report growth in the bottom line and top line in first quarter. Continued share buyback is likely to have driven earnings growth. Higher net investment income and improved asset management fees, commissions and other income, on the other hand, are anticipated to fuel top-line growth.
Moreover, the Multi line insurer’s International operations are likely to display solid sales and earnings improvement along with strong core business growth in the first quarter.
Further, the company is likely to record revenue growth and improved sales at its Individual Life and Group Insurance protection businesses.
However, higher total benefits and expenses are likely to be dampeners.
With respect to earnings trend, the company delivered positive surprises in two of the last four quarters but with an average negative surprise of 5.40%.
Here are some companies from the finance sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
Moody’s Corporation (MCO - Free Report) has an Earnings ESP of +7.38% and a Zacks Rank #2. The company is set to report first-quarter earnings on May 5.
AerCap Holdings N.V. (AER - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #3. The company is slated to report first-quarter earnings on May 9.
Sell These Stocks.Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>
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Prudential Financial (PRU) Q1 Earnings: A Beat in the Cards?
We expect Multi line insurer Prudential Financial, Inc. (PRU - Free Report) to beat expectations when it reports first-quarter 2017 results on May 3, after the market closes.
Why a Likely Positive Surprise?
Our proven model shows that Prudential Financial has the right combination of two key ingredients to beat estimates this quarter.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +0.38%. This is because the Most Accurate estimate of $2.65 is higher than the Zacks Consensus Estimate of $2.64. The positive ESP is a meaningful and leading indicator of a likely earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Prudential Financial holds a Zacks Rank #2 (Buy). Please note that stocks with a Zacks Rank of #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating on earnings. The combination of Prudential Financial’s favorable Zacks Rank and positive Earnings ESP makes us reasonably confident of an earnings beat.
Conversely, the Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
What is Driving the Better-Than-Expected Earnings?
Prudential Financial is likely to report growth in the bottom line and top line in first quarter. Continued share buyback is likely to have driven earnings growth. Higher net investment income and improved asset management fees, commissions and other income, on the other hand, are anticipated to fuel top-line growth.
Moreover, the Multi line insurer’s International operations are likely to display solid sales and earnings improvement along with strong core business growth in the first quarter.
Further, the company is likely to record revenue growth and improved sales at its Individual Life and Group Insurance protection businesses.
However, higher total benefits and expenses are likely to be dampeners.
With respect to earnings trend, the company delivered positive surprises in two of the last four quarters but with an average negative surprise of 5.40%.
Prudential Financial, Inc. Price and EPS Surprise
Prudential Financial, Inc. Price and EPS Surprise | Prudential Financial, Inc. Quote
Other Stocks to Consider
Here are some companies from the finance sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
Hudson Pacific Properties, Inc. (HPP - Free Report) , which is set to report first-quarter earnings on May 4, has an Earnings ESP of +2.08% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Moody’s Corporation (MCO - Free Report) has an Earnings ESP of +7.38% and a Zacks Rank #2. The company is set to report first-quarter earnings on May 5.
AerCap Holdings N.V. (AER - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #3. The company is slated to report first-quarter earnings on May 9.
Sell These Stocks.Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>