PRU Earnings Prediction
The chart below shows how PRU performed 10 days before and after its earnings report, based on data from the past quarters. Typically, PRU sees a -0.20% change in stock price 10 days leading up to the earnings, and a -0.82% change 10 days following the report. On the earnings day itself, the stock moves by -0.47%. This data can give you a slight idea of what to expect for the next quarter's release.
PRU Key Earning Data
PRU Earnings Analysis
Positive
Adjusted Operating Income Increase: Prudential reported a full-year adjusted operating income of $5.9 billion, or $12.62 per share, reflecting a 6% increase from 2023, driven by higher fee and spread income.
Asset Growth and Performance: PGIM's assets under management increased by 6% to $1.4 trillion, supported by strong net flows of $38 billion for the full year, indicating robust investment performance and market appreciation.
Retirement Strategies Sales Surge: Retirement strategies generated strong sales of $50 billion in 2024, with pension risk transfer transactions exceeding $16 billion, marking the highest annual level for any single carrier since 2012.
Record Retirement Sales Growth: Individual Retirement sales reached $3.6 billion in Q4, the best quarter in over a decade, contributing to a total of over $14 billion for the year, an 84% increase from the prior year.
Shareholder Returns and Dividends: Prudential returned nearly $3 billion to shareholders in 2024, with a board authorization for $1 billion in share repurchases for 2025 and a 17th consecutive annual increase in the common stock dividend.
Negative
Q4 2024 Earnings Decline: Earnings for Q4 2024 were lower than anticipated, with a GAAP net loss of $57 million primarily due to interest rate-driven realized losses on the investment portfolio.
Underwriting Results Decline: The U.S. businesses experienced less favorable underwriting results driven by mortality experience and true-ups, leading to increased expenses related to one-time transaction impacts.
Underwriting Results Decline: International businesses reported less favorable underwriting results, particularly due to elevated U.S. dollar product surrenders and higher expenses to support business growth.
Pension Product Runoff Projections: Despite strong sales growth in retirement strategies, the anticipated annual net runoff of pension and longevity risk transfer products is projected to be between $8 billion to $10 billion, alongside legacy variable annuities runoff of $12 billion to $16 billion.
Near-Term Performance Challenges: The company acknowledged near-term strain from new business and the impact of runoff blocks, indicating that performance may not be linear in achieving future financial targets.
PRU FAQs
How does PRU typically perform around its earnings report dates?
PRU's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -0.20% change leading up to the report and a -0.82% change in the 10 days following the release.
Is Prudential Financial Inc (PRU) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
PRU Earning Call Sentiment
Prudential Financial, Inc. (NYSE:PRU) Q4 2024 Earnings Call Transcript
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