Prudential Financial Earnings Preview: Analysts Expect Rising Revenue, Falling EPS
Prudential Financial (NYSE: PRU) announces its next round of earnings this Wednesday, November 2, 2011. Get prepared with Benzinga's ultimate preview for Prudential Financial's third quarter earnings.
Earnings and Revenue:
Wall Street expects an EPS of $1.57/share and revenues of $10.13 billion. Prudential Financial's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $2.12/share on revenues of $7.88 billion. We'll have to wait for Wednesday to see if the company reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 | Q1 | Q4 | Q3 |
| EPS Estimate | $1.55 | $1.48 | $1.48 | $1.43 |
| EPS Actual | $1.71 | $1.69 | $1.78 | $2.12 |
Stock Performance:
Shares of Prudential Financial were trading at $57.32 as of October 27, 2011. Since January 1st, shares have declined 2.4%. For a full 12 months, the return has declined by 4%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.
- Long-term shareholders are already wary of 12-month losses prior to the announcement
Average Stock Rating:
The average rating by analysts is a Moderate Buy. The strength of this rating has declined slightly over the past three months.
Competitors:
Wondering how some of the other financials companies are doing? Here are a few of Prudential Financial's peers in that sector.
- Conseco (NYSE: CNO): Hold with a $0.17 recent quarter EPS
- Delphi Financial Group (NYSE: DFG): Hold with a $0.79 recent quarter EPS
- AFLAC Incorporated (AFL): Moderate Buy with a $1.66 recent quarter EPS
- ING Groep N.V (ING): Strong Buy with a $0.58 recent quarter EPS
Prudential Financial is in the insurance-multiline industry, which has experienced price/earnings growth of 0.7%.
Finally, a description of the company's main areas of operation: Prudential Financial offers a wide range of financial products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services.
Take Action:
Now that you have reviewed all the numbers, be ready to move if the upcoming Prudential Financial earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.
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