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PRU Gears Up to Report Q2 Earnings: Here's What to Expect
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Key Takeaways
PGIM's earnings are expected to benefit from solid asset management fee growth and investment performance.
Net investment income is projected to rise 8.2%, driven by reinvestment rates and growth in annuity products.
AUM is likely to have been boosted by market appreciation, net inflows and performance.
Prudential Financial Inc. (PRU - Free Report) is expected to register a decline in its bottom and top lines when it reports second-quarter 2025 results on July 30, after the closing bell.
The Zacks Consensus Estimate for PRU’s second-quarter revenues is pegged at $13.53 billion, indicating a 2.2% drop from the year-ago reported figure.
The consensus estimate for the bottom line is pegged at $3.21 per share. The estimate suggests a year-over-year decrease of 5.3%. The Zacks Consensus Estimate for PRU’s second-quarter earnings has moved south by 7.2% in the past seven days.
What the Zacks Model Unveils for PRU
Our proven model does not conclusively predict an earnings beat for PRU this time. 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, as you can see below:
Earnings ESP: PRU has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.21. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
The U.S. business is expected to have benefited from higher net investment spread results and more favorable reserve experience, higher underwriting results, and lower expenses across its Retirement Strategies, Group Insurance and Individual Life businesses. The upside is likely to have been offset by higher expenses, lower net fee income and lower net investment spread results.
Prudential Financial’s international businesses are likely to have been affected by lower net investment spread results, a net unfavorable impact from foreign currency exchange rates, and lower earnings on joint ventures and other operating entities.
Lower net investment activity results are expected to have affected the Closed Block Division.
The Individual Retirement Strategies business is likely to have benefited from higher net investment spread results and higher income on non-coupon investments. The upside is likely to have been partially offset by the impact of lower short-term interest rates.
The company expects earnings in PGIM to be boosted by solid asset management fee growth.
Assets under management are likely to have benefited from the fixed income and equity market appreciation, net inflows and strong investment performance.
Net investment income is likely to have gained from growth in indexed variable annuities and higher income from non-coupon investments, higher reinvestment rates, and growth in both variable and investment products. We expect net investment income to increase 8.2% to $4.5 billion in the to-be-reported quarter.
Expenses are likely to have risen because of higher policyholders’ benefits and amortization of deferred policy acquisition costs. We expect total expenses to be $12 billion.
Continued share buybacks are likely to have added to the bottom line.
Stocks to Consider
Here are three insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.58 per share, indicating a year-over-year increase of 36.2%. AIG’s earnings beat estimates in three of the last four quarters while missing in one.
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +1.99% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.43 per share, implying an increase of 8.5% from the year-ago reported figure.
AIZ’s earnings beat estimates in each of the last four quarters.
MGIC Investment Corporation (MTG - Free Report) has an Earnings ESP of +2.37% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 70 cents per share, calling for a decrease of 9.1% from the year-ago reported figure.
MTG’s earnings beat estimates in each of the last four quarters.
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PRU Gears Up to Report Q2 Earnings: Here's What to Expect
Key Takeaways
Prudential Financial Inc. (PRU - Free Report) is expected to register a decline in its bottom and top lines when it reports second-quarter 2025 results on July 30, after the closing bell.
The Zacks Consensus Estimate for PRU’s second-quarter revenues is pegged at $13.53 billion, indicating a 2.2% drop from the year-ago reported figure.
The consensus estimate for the bottom line is pegged at $3.21 per share. The estimate suggests a year-over-year decrease of 5.3%. The Zacks Consensus Estimate for PRU’s second-quarter earnings has moved south by 7.2% in the past seven days.
What the Zacks Model Unveils for PRU
Our proven model does not conclusively predict an earnings beat for PRU this time. 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, as you can see below:
Earnings ESP: PRU has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.21. 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 carries a Zacks Rank #3.
Factors Likely to Shape PRU’s Q2 Results
The U.S. business is expected to have benefited from higher net investment spread results and more favorable reserve experience, higher underwriting results, and lower expenses across its Retirement Strategies, Group Insurance and Individual Life businesses. The upside is likely to have been offset by higher expenses, lower net fee income and lower net investment spread results.
Prudential Financial’s international businesses are likely to have been affected by lower net investment spread results, a net unfavorable impact from foreign currency exchange rates, and lower earnings on joint ventures and other operating entities.
Lower net investment activity results are expected to have affected the Closed Block Division.
The Individual Retirement Strategies business is likely to have benefited from higher net investment spread results and higher income on non-coupon investments. The upside is likely to have been partially offset by the impact of lower short-term interest rates.
The company expects earnings in PGIM to be boosted by solid asset management fee growth.
Assets under management are likely to have benefited from the fixed income and equity market appreciation, net inflows and strong investment performance.
Net investment income is likely to have gained from growth in indexed variable annuities and higher income from non-coupon investments, higher reinvestment rates, and growth in both variable and investment products. We expect net investment income to increase 8.2% to $4.5 billion in the to-be-reported quarter.
Expenses are likely to have risen because of higher policyholders’ benefits and amortization of deferred policy acquisition costs. We expect total expenses to be $12 billion.
Continued share buybacks are likely to have added to the bottom line.
Stocks to Consider
Here are three insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
American International Group, Inc. (AIG - Free Report) has an Earnings ESP of +0.18% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.58 per share, indicating a year-over-year increase of 36.2%. AIG’s earnings beat estimates in three of the last four quarters while missing in one.
Assurant, Inc. (AIZ - Free Report) has an Earnings ESP of +1.99% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.43 per share, implying an increase of 8.5% from the year-ago reported figure.
AIZ’s earnings beat estimates in each of the last four quarters.
MGIC Investment Corporation (MTG - Free Report) has an Earnings ESP of +2.37% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 70 cents per share, calling for a decrease of 9.1% from the year-ago reported figure.
MTG’s earnings beat estimates in each of the last four quarters.