Prudential Financial Q1 Earnings Coming Up: What to Expect

Prudential Financial Inc. PRU is expected to register an improvement in its bottom line but a decline in its top line when it reports first-quarter 2025 results on April 30, after the closing bell.

The Zacks Consensus Estimate for PRU’s first-quarter revenues is pegged at $14.5 billion, indicating a 33.3% decline from the year-ago reported figure.

The consensus estimate for the bottom line is pegged at $3.21 per share. The estimate suggests a year-over-year increase of 2.9%. The Zacks Consensus Estimate for PRU’s first-quarter earnings has moved south by 1.5% in the past seven days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

What the Zacks Model Unveils for PRU

Our proven model does not conclusively predict an earnings beat for PRU this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) that increases the chances of an earnings beat. This is not the case as you can see below. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: PRU has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $3.21.

Zacks Rank: PRU carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Shape PRU’s Q1 Results

The U.S. business is expected to have benefited from higher fees, improved net investment spread and underwriting income. A complementary mix of longevity and mortality businesses, continued focus on expanding business in an addressable market with new financial solutions and a solid distribution footprint are likely to have added to the upside. 

Prudential Financial’s international businesses are likely to have benefited from a diversified product portfolio in Japan, including retirement solutions, as well as expanded distribution channels in Brazil. Favorable spread income due to higher yields from favorable market performance and reinvestment of the portfolio are likely to have added to the upside. However, increased expenses are likely to have been a partial offset. 

Sales are likely to have improved given diversified products and expanded distribution networks in Group Insurance and Individual Life. Growth in supplemental health is likely to have aided Group Insurance sales, while expanded distribution capabilities and a compelling product portfolio are likely to have benefited Individual Life sales.

The Individual Retirement Strategies business is likely to have benefited from improved sales in registered index-linked annuities and fixed annuity product sales. 

The company expects earnings in PGIM to be boosted by solid asset management fee growth.

Assets under management are likely to have benefited from the impact of lower interest rates, equity market appreciation and strong investment performance.

Net investment income is likely to have gained from growth in indexed variable annuities, higher reinvestment rates and higher income on non-coupon investments as well as portfolio growth. We expect net investment income to increase 6.3% to $4.4 billion in the to-be-reported quarter.

Expenses are likely to have increased because of higher policyholders’ benefits and amortization of deferred policy acquisition costs. We expect total expenses to be $13.8 billion. 

Continued share buybacks are likely to have added to the bottom line.

Stocks to Consider

Here are three insurance stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Enact Holdings ACT has an Earnings ESP of +2.68% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $1.12, indicating a year-over-year increase of 7.7%

ACT’s earnings beat estimates in three of the last four reported quarters, while missing in one.

Assurant AIZ has an Earnings ESP of +1.53% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $3.00, indicating a year-over-year decrease of 37.2%.

AIZ’s earnings beat estimates in each of the last four reported quarters.

CNO Financial Group CNO has an Earnings ESP of +1.69% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 79 cents, indicating a year-over-year increase of 51.9%.

CNO’s earnings beat estimates in three of the last four reported quarters and missed in one.

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This article originally published on Zacks Investment Research (zacks.com).

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