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What's in the Cards for Prudential (PRU) in Q2 Earnings?

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·4 min read
In this article:
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Prudential Financial, Inc. PRU is slated to report second-quarter 2022 earnings on Aug 2, after market close. PRU delivered an earnings surprise in each of the last four quarters, the average being 29.37%.

Factors to Consider

The U.S. business is likely to have benefited from higher net investment spread results, more favorable underwriting results and lower expenses. The upside is likely to have been offset by lower net fee income.

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 been affected by lower net investment spread, less favorable underwriting and lower earnings from joint venture investments, partially offset by business growth.

The retirement business is likely to have decreased due to less favorable reserve experience. The downside is likely to have been offset by a higher net investment spread.

Group Insurance business in the to-be-reported quarter is likely to have benefited from more favorable underwriting in both group life and disability, partially offset by higher expenses.

PGIM is likely to have decreased due to the absence of a gain in the prior-year period from the sale of a 35% ownership stake in Pramerica SGR, higher expenses and lower other related revenues. The downside is likely to have been offset by an increase in asset management fees.

Assets under management are likely to have been affected by market depreciation, resulting from higher interest rates and spreads, lower equity markets and unfavorable foreign exchange rate impacts.

Net investment income is likely to have benefited from higher income on non-coupon investments, higher average invested assets and growth of business in force.

Expenses are likely to have decreased due to lower interest credited to policyholders’ account balances, dividends to policyholders and general and administrative expenses.

Individual Annuities is likely to have benefited from higher net investment spread results and lower expenses. The increase is likely to have been partially offset by lower fee income, net of distribution expenses and other associated costs.
Individual life sales are likely to have increased in the to-be-reported quarter due to less unfavorable underwriting results and higher net investment spread results.

Prudential estimates earnings per share to be $2.75 for the second quarter of 2022.

The Zacks Consensus Estimate for earnings per share is pegged at $2.62, indicating a decline of 30.8% from the year-ago period reported figure. The Zacks Consensus Estimate for revenues is pegged at $12.5 billion, indicating a decline of 4.1% from the year-ago reported figure.

What Our Quantitative Model Unveils

Our proven model does not conclusively predict an earnings beat for Prudential Financial this time around. 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: Prudential Financial has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.62. 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 and EPS Surprise
Prudential Financial, Inc. Price and EPS Surprise

Prudential Financial, Inc. price-eps-surprise | Prudential Financial, Inc. Quote

Zacks Rank: Prudential Financial has a Zacks Rank #5 (Strong Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some insurance stocks also with the right combination of elements to come up with an earnings beat this time around are:

Lemonade, Inc. LMND has an Earnings ESP of +12.50% and a Zacks Rank of 1. The Zacks Consensus Estimate for second-quarter 2022 earnings indicates a decline of 51.1% from the year-ago reported figure.

LMND beat earnings estimates in two of the last four reported quarters while missing the same in the other two.

SelectQuote, Inc. SLQT has an Earnings ESP of +12.07% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings implies a decline of 1050% from the year-ago reported figure.

SLQT beat earnings estimates in two of the last four reported quarters while missing the same in the other two.

CCC Intelligent Solutions Holdings Inc. CCCS has an Earnings ESP of +4.35% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings stands at 8 cents, indicating a decline of 99.5% from the year-ago reported figure.

CCCS beat earnings estimates in two of the last four reported quarters while missing the same in the other two.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Prudential Financial, Inc. (PRU) : Free Stock Analysis Report
 
SelectQuote, Inc. (SLQT) : Free Stock Analysis Report
 
Lemonade, Inc. (LMND) : Free Stock Analysis Report
 
CCC Intelligent Solutions Holdings Inc. (CCCS) : Free Stock Analysis Report
 
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