Published on 25 Apr 2024 on Zacks via Yahoo Finance

What's in Store for Prudential Financial (PRU) in Q1 Earnings?

Prudential Financial, Inc. PRU is slated to report first-quarter 2024 earnings on Apr 30, after market close. PRU delivered a negative earnings surprise in the last reported quarter.

Factors to Consider

The U.S. business is likely to have benefited from higher net investment spread results and lower expenses, partially offset by a decline in net fee income.Prudential Financial’s international businesses are likely to have been affected by less favorable underwriting results, including unfavorable policyholder behavior. The downside is likely to have been partially offset by lower expenses.Group Insurance business in the to-be-reported quarter is likely to have benefited from more favorable underwriting results in both group life and disability and lower expenses.PGIM is likely to have decreased due to higher expenses and lower other related revenues, primarily due to a decline in incentive fees and agency income. The downside is likely to have been partially offset by higher asset management fees.Assets under management are likely to have benefited from equity market appreciation and tightening credit spreads, partially offset by net outflows.Net investment income is likely to have gained from higher reinvestment rates and growth in indexed variable annuities. The upside is likely to have been partially offset by lower income on non-coupon investments. We expect net investment income to increase 18.4% to $4.3 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 be $11.7 billion.The Individual Retirement Strategies business is likely to have benefited from higher net investment spread results and lower expenses. The downside is likely to have been partially offset by lower fee income, net of distribution expenses and other associated costs.The company estimates earnings per share to be $3.36 for the first quarter of 2024.The Zacks Consensus Estimate for earnings per share is pegged at $3.16, indicating an increase of 18.8% from the year-ago period’s reported figure.The Zacks Consensus Estimate for revenues is pegged at $14.78 billion, indicating a decrease of 2.1% from the year-ago reported figure.