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Prudential (PRU) to Report Q1 Earnings: What's in Store?
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Prudential Financial, Inc. (PRU - Free Report) is slated to report first-quarter 2022 earnings on May 3, after market close. PRU delivered an earnings surprise in each of the last four quarters, the average being 38.03%.
Factors to Consider
The U.S. business is likely to have benefited from a higher net investment spread, driven by increased variable investment income and fee income. The upside is likely to have been offset by less favorable underwriting experience due to COVID-related mortality and higher expenses.
Higher sales are likely to have boosted the Life Planner and Gibraltar Life operations in the to-be-reported quarter.
Prudential Financial’s international businesses are likely to have gained from continued business growth, higher net investment spread, lower expenses, and higher earnings from joint venture investments.
The retirement business is likely to have benefited from higher net investment spread results.
Group Insurance business in the to-be-reported quarter is expected to have been weighed on by lower other related revenues and higher expenses, offset by higher asset management fees.
PGIM is likely to have decreased due to lower other related revenues and higher expenses. The downside is likely to have been offset by an increase in asset management fees.
Assets under management are likely to have benefited from market appreciation, strong investment performance and third-party inflows.
Prudential estimates net investment income to be reduced by about $10 million in the first quarter of 2022. It will reflect the difference between new money rates and disposition yields of the investment portfolio.
Expenses are likely to have increased due to higher policyholders’ benefits, dividends to policyholders and general and administrative expenses. Prudential expects seasonal expenses and other items to be lower in the first quarter of 2022 by $105 million.
Individual Annuities is likely to have benefited from higher fee income, net of distribution expenses and other associated costs and higher net investment spread results.
Individual life sales are likely to have increased in the to-be-reported quarter due to higher variable life sales.
Prudential estimates earnings per share to be $2.73 for the first quarter of 2022, which indicates a decline of 33.6% from the year-ago reported figure.
The Zacks Consensus Estimate for earnings per share is pegged at $2.67, indicating a decline of 35% from the year-ago period reported figure. The Zacks Consensus Estimate for revenues is pegged at $14.2 billion, indicating a decline of 0.3% from the year-ago reported figure.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Prudential 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). This is not the case here.
Earnings ESP: Prudential has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.67. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Prudential currently carries a Zacks Rank of 4 (Sell).
Some insurance stocks with the right combination of elements to come up with an earnings beat this time around are:
NMI Holdings Inc. (NMIH - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 75 cents, indicating an increase of 20.9% from the year-ago reported figure.
NMIH’s earnings beat estimates in each of the four trailing quarters of 2021.
Assurant (AIZ - Free Report) has an Earnings ESP of +8.57% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at $2.86, indicating an increase of 15.8% from the year-ago reported figure.
AIZ’s earnings beat estimates in each of the four trailing quarters of 2021.
Horace Mann Educators Corporation (HMN - Free Report) has an Earnings ESP of +3.74% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 94 cents, indicating a decline of 14.5% from the year-ago reported figure.
HMN’s earnings beat estimates in each of the four trailing quarters of 2021.
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Prudential (PRU) to Report Q1 Earnings: What's in Store?
Prudential Financial, Inc. (PRU - Free Report) is slated to report first-quarter 2022 earnings on May 3, after market close. PRU delivered an earnings surprise in each of the last four quarters, the average being 38.03%.
Factors to Consider
The U.S. business is likely to have benefited from a higher net investment spread, driven by increased variable investment income and fee income. The upside is likely to have been offset by less favorable underwriting experience due to COVID-related mortality and higher expenses.
Higher sales are likely to have boosted the Life Planner and Gibraltar Life operations in the to-be-reported quarter.
Prudential Financial’s international businesses are likely to have gained from continued business growth, higher net investment spread, lower expenses, and higher earnings from joint venture investments.
The retirement business is likely to have benefited from higher net investment spread results.
Group Insurance business in the to-be-reported quarter is expected to have been weighed on by lower other related revenues and higher expenses, offset by higher asset management fees.
PGIM is likely to have decreased due to lower other related revenues and higher expenses. The downside is likely to have been offset by an increase in asset management fees.
Assets under management are likely to have benefited from market appreciation, strong investment performance and third-party inflows.
Prudential estimates net investment income to be reduced by about $10 million in the first quarter of 2022. It will reflect the difference between new money rates and disposition yields of the investment portfolio.
Expenses are likely to have increased due to higher policyholders’ benefits, dividends to policyholders and general and administrative expenses. Prudential expects seasonal expenses and other items to be lower in the first quarter of 2022 by $105 million.
Individual Annuities is likely to have benefited from higher fee income, net of distribution expenses and other associated costs and higher net investment spread results.
Individual life sales are likely to have increased in the to-be-reported quarter due to higher variable life sales.
Prudential estimates earnings per share to be $2.73 for the first quarter of 2022, which indicates a decline of 33.6% from the year-ago reported figure.
The Zacks Consensus Estimate for earnings per share is pegged at $2.67, indicating a decline of 35% from the year-ago period reported figure. The Zacks Consensus Estimate for revenues is pegged at $14.2 billion, indicating a decline of 0.3% from the year-ago reported figure.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Prudential 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). This is not the case here.
Earnings ESP: Prudential has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.67. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Prudential currently carries a Zacks Rank of 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:
NMI Holdings Inc. (NMIH - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 75 cents, indicating an increase of 20.9% from the year-ago reported figure.
NMIH’s earnings beat estimates in each of the four trailing quarters of 2021.
Assurant (AIZ - Free Report) has an Earnings ESP of +8.57% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at $2.86, indicating an increase of 15.8% from the year-ago reported figure.
AIZ’s earnings beat estimates in each of the four trailing quarters of 2021.
Horace Mann Educators Corporation (HMN - Free Report) has an Earnings ESP of +3.74% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 94 cents, indicating a decline of 14.5% from the year-ago reported figure.
HMN’s earnings beat estimates in each of the four trailing quarters of 2021.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.