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Prudential Financial, Inc. (PRU) is scheduled to report its Q2 2012 results on August 2, 2012, before market opens. The street expects EPS and revenue of $1.55 and $10.63B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from PRU and the news from its closest competitors.

Prudential Financial, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter it reported $1.56 EPS, failing to meet analyst estimates of $1.71.

Prudential Financial, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $1.55 based on 19 analysts' estimates, down from $1.71 a year ago. Revenue estimates are $10.63B, up from $10.15B a year ago. The median target price by analysts for the stock is $65.50.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On July 17, 2012, UBS initiated Neutral rating for the company.
  • On June 4, 2012, RBC Capital Mkts reiterated Outperform rating for the company.
  • On May 14, 2012, Argus downgraded the company from Buy to Hold.
  • On May 10, 2012, FBR Capital reiterated Outperform rating for the company.
  • On May 4, 2012, UBS reiterated Buy rating for the company.
  • On May 3, 2012, Barclays downgraded the company from Overweight to Equal Weight.
  • On April 2, 2012, Barclays reiterated Overweight rating for the company.

Latest News

  • On June 19, 2012, Reuters reported that The Bank of New York Mellon Corporation will compensate Prudential Financial, Inc after the insurer complained about the pricing of its foreign exchange transactions, according to a recent court filing by the U.S. Justice Department.
  • On June 12, 2012, Prudential Financial, Inc announced that its Board of Directors has authorized the repurchase of up to $1.0 billion of its outstanding Common Stock during the period from July 1, 2012 through June 30, 2013.
  • On May 18, 2012, Reuters reported that Manulife Financial Corp, Metlife Inc and Prudential Financial Corp are among suitors expected to place first round bids on Friday to buy ING Groep's Asia life insurance unit in a deal worth about $6.5 billion to $7 billion, sources familiar with the matter said.
  • On March 26, 2012, Reuters reported that insurers including MetLife, Inc. and Manulife Financial Corp are hiring banks to advise them on a potential purchase of the Asian insurance and asset management arms of ING Groep NV. MetLife has hired Credit Suisse.
  • On February 17, 2012, Prudential Real Estate Investors (PREI) and Greystar announced that they have formed a joint venture to develop a 200-unit Class-A, mid-rise luxury apartment community in downtown Charleston, S.C. PREI is the real estate investment management and advisory business of Prudential Financial, Inc.. PREI is acting on behalf of German investors.

Competitors

American International Group (AIG), ING (ING), MetLife (MET), and Manulife Financial Corporation (MFC) are considered major competitors for Prudential Financial and the table below provides the key metrics for these companies and the industry.

Prudential Financial, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

PRU Chart

PRU data by YCharts

Competitors' Latest Development

  • On July 25, 2012, Metlife Inc announced that John C. R. Hele, 53, will join the Company as executive vice President and Chief Financial Officer, effective September 4, 2012.
  • On July 24, 2012, Reuters reported that ING Groep NV was in talks with the Dutch state and the European Commission over an amended restructuring plan. The discussions are not expected to affect ING's plan to divest its insurance business, but could mean it no longer has to sell its Dutch banking unit, known as WestlandUtrecht.
  • On July 18, 2012, International Lease Finance Corporation (ILFC), a wholly owned subsidiary of American International Group, Inc., announced that it had entered into a leasing agreement with China Airlines for three new Boeing 737-800s.
  • On July 16, 2012, Reuters reported that Dai-ichi Mutual Life Insurance Company and Korea Life Insurance Co Ltd, were first out of the blocks to submit second-round bids on Monday for ING Groep NV's insurance operations in Southeast Asia, as the Dutch insurer moves to divest it Asian operations.
  • On July 6, 2012, Reuters reported that the World Bank's investment arm and ING Groep NV's ING Bank would partner in a $500 million facility to ensure that food and energy traders continue to have access to finance at a time when bank lending is tightening.
  • On June 26, 2012, Dow Jones reported that Fitch Ratings has affirmed ratings for ING Groep NV and SNS Reaal with stable outlook.
  • On June 19, 2012, Reuters reported that Aia Group Ltd, Manulife Financial Corp and Prudential plc are among companies that have made initial bids for the life insurance joint venture of Malaysia's CIMB Group Holdings Berhad and Aviva plc in a deal estimated to be worth at least $400 million.
  • On June 15, 2012, Reuters reported that Moody's Investors Service had downgraded five Dutch banks, four of them by two notches, and warned a Greek exit of the euro would see further cuts, kicking off a long-awaited round of downgrades for major European institutions.
  • On June 12, 2012, AIG Century GmbH & Co. KGaA (AIG Century), a company indirectly wholly owned by American International Group, Inc. , announced that it has published the offer document for its voluntary public tender offer for all shares of AIRE GmbH & Co. KgaA (AIRE).
  • On June 12, 2012, ING Groep NV announced that ING Bank has entered into a Settlement Agreement with United States Department of the Treasury's Office of Foreign Assets Control (OFAC) and Deferred Prosecution Agreements with the Department of Justice, the United States Attorney's Office for the District of Columbia and the District Attorney of the County of New York in relation to the investigation by those agencies into compliance with United States economic sanctions and United States dollar payment practices until 2007.
  • On May 31, 2012, Dow Jones reported that ING Groep NV and its advisers have narrowed down the field of suitors for its Asian life insurance operations to a short-list that includes Canada's Manulife Financial Corp and Hong Kong's AIA Group Limited.
  • On May 31, 2012, Dow Jones reported that ING Groep NV and its advisers have narrowed down the field of suitors for its Asian life insurance operations to a short-list that includes Canada's Manulife Financial Corp and Hong Kong's AIA Group Limited.
  • On May 31, 2012, Dow Jones reported that KOREA LIFE INSURANCE and Kb Financial Group Inc have been shortlisted in the bidding for ING Groep NV's life insurance operations in Asia.
  • On May 24, 2012, Manulife Financial Corp announced that it has completed its offering of 10 million Non cumulative Rate Reset Class 1 Shares Series 9 (the Series 9 Preferred Shares) at a price of $25 per share to raise gross proceeds of $250 million.
  • On May 19, 2012, Reuters reported that Manulife Financial Corp and MetLife, Inc. are among the companies that have submitted first round bids for ING Groep NV's entire Asia life insurance business, sources said on Saturday.
  • On May 18, 2012, Reuters reported that Manulife Financial Corp, Metlife Inc and Prudential Financial Corp are among suitors expected to place first round bids on Friday to buy ING Groep's Asia life insurance unit in a deal worth about $6.5 billion to $7 billion, sources familiar with the matter said.
  • On May 15, 2012, Metlife Inc announced that it has declared second quarter 2012 dividends of $0.2555555 per share on the Company`s floating rate non-cumulative preferred stock, Series A, and $0.4062500 per share on the Company`s 6.50% non-cumulative preferred stock, Series B. Both dividends are payable June 15, 2012 to shareholders of record as of May 31, 2012.
  • On May 3, 2012, Manulife Financial Corp announced a quarterly shareholders' dividend of $0.13 per share on the common shares of the Company, payable on and after June 19, 2012, to shareholders of record at the close of business on May 15, 2012.
  • On May 3, 2012, Manulife Financial Corp announced the appointment of Steve Roder as incoming Senior Executive Vice President and Chief Financial Officer (NASDAQ:CFO). Mr. Roder will succeed Michael W. Bell who will be returning to Philadelphia to rejoin his family.
  • On May 1, 2012, Canada Stockwatch News reported that John Hancock Real Estate, the U.S. unit of Manulife Financial Corp.'s Manulife Real Estate, has acquired 150 North Michigan Ave. in downtown Chicago from SEB Investment GmbH, a Germany-based real estate fund manager, for $102 million in a deal that closed on April 27, 2012.

Technical Overview


The stock has a market capitalization of $22.55B and is currently trading at $48.08 with a 52 week range of $42.45 - $65.17. The stock's year-to-date performance has been -4.07%. It is currently trading above 20 and 50 SMA, but below 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Prudential Financial Q2 Earnings Preview