Prudential Q3 profit, operating income decline due to Japan sales suspension
Overview
US insurance and investment manager's Q3 net income declined year-over-year
After-tax adjusted operating income fell from the prior-year period
Lower Japan earnings from sales suspension offset growth in US and PGIM units
Outlook
Company did not provide specific financial guidance for the current quarter or full year in its press release
Result Drivers
JAPAN SALES SUSPENSION - Lower earnings in Japan, mainly due to the Prudential of Japan sales suspension, weighed on overall results
PGIM EARNINGS GROWTH - PGIM reported higher adjusted operating income, driven by lower expenses and higher asset management fees, despite lower seed and co-investment earnings
US BUSINESS MIXED TRENDS - U.S. Businesses saw higher variable expenses and lower fee income from annuity run-off, partially offset by improved investment spreads and underwriting
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Income Attributable to Prudential Financial | $1.39 bln | ||
Q3 Adjusted Operating Income | Miss | $1.32 bln | $1.72 bln (2 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 15 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the life & health insurance peer group is "buy."
Wall Street's median 12-month price target for Prudential Financial Inc is $104.50, about 11.7% below its November 2 closing price of $118.30
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)