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: Here's What to Expect
Read MoreHide Full Article
Prudential Financial, Inc. (PRU - Free Report) is slated to report fourth-quarter 2023 earnings on Feb 6, after market close. PRU delivered a positive earnings surprise in the last reported quarter.
Factors to Consider
The U.S. business is likely to have benefited from higher spread income, including more favorable variable investment income and lower expenses. The upside is expected to have been partially offset by lower fee income and the increase in earnings in International businesses, which primarily reflected higher spread income.
Prudential Financial’s international businesses are likely to have benefited from higher net investment spread results and improved underwriting results. The upside is likely to have been partially offset by higher expenses.
Group Insurance business in the to-be-reported quarter is likely to have benefited from higher underwriting results. The upside is expected to have been partially offset by higher expenses.
PGIM is likely to have decreased due to lower net asset management fees and higher compensation and operating expenses. The downside is likely to have been partially offset by higher net other related revenues and service, distribution and other revenues.
Assets under management are likely to have benefited from equity market appreciation, lower interest rates and tightening credit spreads, partially offset by net outflows.
Net investment income is likely to have gained from higher income from non-coupon investments, and improved reinvestment and short-term rates. The upside is likely to have been partially offset by lower realized investment gains from unfavorable derivative settlements. We expect net investment income to increase 16.8% to $4.1 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 increase 4.3% to $11.4 billion.
The Individual Retirement Strategies business is likely to have benefited from a rise in net investment income due to improved reinvestment rates and growth in indexed variable annuities and other income. The improvement is likely to have been driven by more favorable short-term interest rates on collateral posted to counterparties. The upside is likely to have been partially offset by a decline in income on non-coupon investments and lower asset management and service fees, as well as a decrease in policy charges and fee income.
The company estimates earnings per share to be $2.75 for the fourth quarter of 2023.
The Zacks Consensus Estimate for earnings per share is pegged at $2.67, indicating an increase of 10.3% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for revenues is pegged at $13.07 billion, indicating an increase of 3.3% from the year-ago reported figure.
What Our Quantitative Model Unveils
Our proven model does not 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) that increases the odds of an earnings beat. This is not the case here as you can see below.
Earnings ESP: Prudential has an Earnings ESP of -1.60%. This is because the Most Accurate Estimate of $2.63 is pegged lower than the Zacks Consensus Estimate of $2.67. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Everest Group, Ltd. (EG - Free Report) has an Earnings ESP of +1.18% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $14.63, indicating an increase of 19.8% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
EG’s earnings beat estimates in three of the last four quarters while missing in one.
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.94, implying a decline of 9.3% from the year-ago reported figure.
ACGL’s earnings beat estimates in each of the last four reported quarters.
Primerica, Inc. (PRI - Free Report) : has an Earnings ESP of +0.44% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $4.26, indicating an increase of 22.06% from the year-ago reported figure.
PRI’s earnings beat estimates in each of the last four reported quarters.
Image: Bigstock
Prudential (PRU) to Report Q4 Earnings: Here's What to Expect
Prudential Financial, Inc. (PRU - Free Report) is slated to report fourth-quarter 2023 earnings on Feb 6, after market close. PRU delivered a positive earnings surprise in the last reported quarter.
Factors to Consider
The U.S. business is likely to have benefited from higher spread income, including more favorable variable investment income and lower expenses. The upside is expected to have been partially offset by lower fee income and the increase in earnings in International businesses, which primarily reflected higher spread income.
Prudential Financial’s international businesses are likely to have benefited from higher net investment spread results and improved underwriting results. The upside is likely to have been partially offset by higher expenses.
Group Insurance business in the to-be-reported quarter is likely to have benefited from higher underwriting results. The upside is expected to have been partially offset by higher expenses.
PGIM is likely to have decreased due to lower net asset management fees and higher compensation and operating expenses. The downside is likely to have been partially offset by higher net other related revenues and service, distribution and other revenues.
Assets under management are likely to have benefited from equity market appreciation, lower interest rates and tightening credit spreads, partially offset by net outflows.
Net investment income is likely to have gained from higher income from non-coupon investments, and improved reinvestment and short-term rates. The upside is likely to have been partially offset by lower realized investment gains from unfavorable derivative settlements. We expect net investment income to increase 16.8% to $4.1 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 increase 4.3% to $11.4 billion.
The Individual Retirement Strategies business is likely to have benefited from a rise in net investment income due to improved reinvestment rates and growth in indexed variable annuities and other income. The improvement is likely to have been driven by more favorable short-term interest rates on collateral posted to counterparties. The upside is likely to have been partially offset by a decline in income on non-coupon investments and lower asset management and service fees, as well as a decrease in policy charges and fee income.
The company estimates earnings per share to be $2.75 for the fourth quarter of 2023.
The Zacks Consensus Estimate for earnings per share is pegged at $2.67, indicating an increase of 10.3% from the year-ago period’s reported figure.
The Zacks Consensus Estimate for revenues is pegged at $13.07 billion, indicating an increase of 3.3% from the year-ago reported figure.
What Our Quantitative Model Unveils
Our proven model does not 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) that increases the odds of an earnings beat. This is not the case here as you can see below.
Earnings ESP: Prudential has an Earnings ESP of -1.60%. This is because the Most Accurate Estimate of $2.63 is pegged lower than the Zacks Consensus Estimate of $2.67. 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 #2 at present.
Stocks to Consider
Some insurance stocks with the right combination of elements to deliver an earnings beat this time around are:
Everest Group, Ltd. (EG - Free Report) has an Earnings ESP of +1.18% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $14.63, indicating an increase of 19.8% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
EG’s earnings beat estimates in three of the last four quarters while missing in one.
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.94, implying a decline of 9.3% from the year-ago reported figure.
ACGL’s earnings beat estimates in each of the last four reported quarters.
Primerica, Inc. (PRI - Free Report) : has an Earnings ESP of +0.44% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $4.26, indicating an increase of 22.06% from the year-ago reported figure.
PRI’s earnings beat estimates in each of the last four reported quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.