What's Awaits Prudential Financial (PRU) In Q1 Earnings?
Zacks Investment Research | Apr 28, 2019 09:46PM ET
Prudential Financial, Inc. (NYSE:PRU) is slated to report first-quarter 20198 results on May 1, after market close. The company came up with a positive earnings surprise in two of the last four reported quarters.
Factors to Consider
Prudential’s first-quarter results are likely to benefit from premium sales, greater scale, expanded product offerings and broader distribution capabilities.
Financial Wellness solutions that gained traction are expected to aid full-service retirement plan sales and Group Insurance sales.
Retirement business is expected to generate improved risk-adjusted returns, specifically with less competition, improved risk profile and leadership in the pension risk transfer business.
International Insurance segment is likely to benefit from higher contributions from Life Planner plus Gibraltar Life and Other operations.
An improved interest rate environment and broader invested asset base should drive investment results.
Revenues are likely to benefit from increase in premiums, investment income, policy charges as well as fee income. The Zacks Consensus Estimate for revenues is pegged at $13.7 billion, indicating an increase of 6.7% from the year-ago reported figure.
However, expenses are likely to increase attributable to higher policyholders’ benefits, amortization of deferred policy acquisition costs as well as general and administrative expenses. This might weigh on operating margin expansion.
Nonetheless, lower share count owing to buybacks is likely to provide a boost to the bottom line. The Zacks Consensus Estimate for earnings per share is pegged at $3.11, indicating nearly 1% increase from the year-ago period reported figure.rudential Financial, Inc. Price and EPS Surprise
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