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
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
12.52B
-16.98%
-35.75%
Gross Margin
--
--
--
Operating Margin
-1.19%
-109.76%
-141.90%
Net Margin
0.58%
-93.40%
-74.89%
EPS
-0.16
-104.43%
-112.90%
No Data Available
PRU Earnings Analysis
Prudential Financial Inc Corporation (PRU.N) Earnings Conference Call
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
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PRU Earning Call Sentiment
Prudential Financial, Inc. (NYSE:PRU) Q4 2024 Earnings Call Transcript
PRU.N
0.01%Positive
The earnings call summary indicates strong financial performance with increased sales, improved return on equity, and positive cash flow. The Q&A section reveals a generally optimistic outlook, despite some uncertainties. Shareholder returns and strategic initiatives like pension risk transfer and international growth further support a positive sentiment. However, concerns like the lawsuit and headwinds in free cash flow conversion slightly temper the outlook. Overall, the positive factors outweigh the negatives, suggesting a positive stock price movement.
