Earnings Preview: Prudential Financial

| About: Prudential Financial, (PRU)

Prudential Financial (NYSE:PRU) is expected to report Q4 earnings after market close Wednesday, February 4 with a conference call scheduled for Thursday, February 5 at 11:00 am ET.


The consensus estimate for EPS is $(1.19) and the consensus estimate for revenue is $6.35B, according to First Call. The consensus range for EPS is ($1.50)-(98c), while the consensus range for revenue is $5.81B-$6.82B. Several research firms have issued negative outlooks on Prudential in recent weeks.

Analyst Views

Credit Suisse last month wrote that Prudential is more likely than some of its peers to have downward pressure on its credit ratings. Friedman Billings in December downgraded the insurer to Market Perform from Outperform on valuation. The firm slashed their target to $33 from $50. Also in December, J.P.Morgan downgraded the company to Neutral from Overweight, as the firm believes that the insurance sector will be hit by weak earnings, poor operating trends, and capital concerns.

On a positive note, last month the Wall Street Journal predicted that corporate bond prices could rally, and contended that life insurance companies, including Prudential, could benefit from that.

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Tagged: , Life Insurance, Earnings
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