Financial services giant Prudential Financial (NYSE: PRU) will be reporting results this Wednesday after the bell. Here’s what you need to know.
Prudential missed analysts’ revenue expectations by 1% last quarter, reporting revenues of $13.51 billion, down 2.5% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ net premiums earned estimates but a significant miss of analysts’ book value per share estimates.
Is Prudential a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Prudential’s revenue to decline 27.2% year on year to $14.19 billion, a reversal from the 94% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.72 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Prudential has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Prudential’s peers in the insurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Globe Life delivered year-on-year revenue growth of 4.1%, meeting analysts’ expectations, and Globe Life’s stock price was unchanged following the results.
Read our full analysis of Globe Life’s results here and Principal Financial Group’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the insurance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Prudential is down 1.8% during the same time and is heading into earnings with an average analyst price target of $116.07 (compared to the current share price of $102).
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