Prudential (PRU) to Report Q4 Earnings: Here's What to Expect

Core Viewpoint - Prudential Financial, Inc. (PRU) is expected to report fourth-quarter 2023 earnings on February 6, with a projected earnings per share of $2.75, reflecting a positive outlook compared to the Zacks Consensus Estimate of $2.67, which indicates a 10.3% increase from the previous year [1][5][4]. Factors to Consider - The U.S. business is anticipated to benefit from higher spread income, including favorable variable investment income and lower expenses, although this may be partially offset by lower fee income [2]. - International businesses are likely to see improved results from higher net investment spreads and underwriting results, with some offset from increased expenses [2]. - The Group Insurance segment is expected to show higher underwriting results, countered by rising expenses [2]. PGIM Performance - PGIM is projected to experience a decrease in net asset management fees and higher operating expenses, though this may be mitigated by increased net other related revenues [3]. - Assets under management are expected to benefit from equity market appreciation and lower interest rates, despite facing net outflows [3]. - Net investment income is forecasted to rise by 16.8% to $4.1 billion, driven by higher income from non-coupon investments [3]. Expense Outlook - Total expenses are expected to rise by 4.3% to $11.4 billion, influenced by higher general and administrative costs and amortization of deferred policy acquisition costs [4]. Earnings Estimates - The Zacks Consensus Estimate for revenues is projected at $13.07 billion, indicating a 3.3% increase from the previous year [5]. - The company has an Earnings ESP of -1.60%, suggesting a lower likelihood of an earnings beat this quarter [6]. Comparison with Other Stocks - Other insurance stocks with favorable earnings prospects include Everest Group, Arch Capital Group, and Primerica, each showing positive Earnings ESP and varying Zacks Ranks [7][8].