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Newark, New Jersey-based Prudential Financial, Inc. (PRU) provides insurance, investment management, and other financial products and services. Valued at a market cap of $35 billion, the company offers an array of financial products and services including life insurance, annuities, retirement-related services, mutual funds, investment management and real estate services. It is scheduled to announce its fiscal Q1 earnings for 2025 after the market closes on Wednesday, Apr. 30.
Ahead of this event, analysts expect this insurance company to report a profit of $3.33 per share, up 6.7% from $3.12 per share in the year-ago quarter. The company has missed Wall Street's earnings estimates in three of the last four quarters, while exceeding on another occasion. In Q4 2024, PRU’s EPS of $2.96 fell short of the forecasted figure by 9.8%.
For fiscal 2025, analysts expect PRU to report a profit of $14.08 per share, up 11.6% from $12.62 in fiscal 2024. Furthermore, its EPS is expected to grow 6.2% year over year to $14.95 in fiscal 2026.
Shares of PRU have fallen 8.3% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 4.4% gain, and the Financial Select Sector SPDR Fund’s (XLF) 17.5% rise over the same time frame.
On Feb. 4, PRU released its Q4 results. Shares of the company plunged 3.3% the following day as it delivered an underwhelming performance, with its adjusted earnings of $2.96 per share missing consensus estimates by 9.8%. The earnings shortfall was primarily driven by a 10.8% decline in its U.S. business operating income, which fell to $860 million due to higher expenses and lower net fee income. Nonetheless, on a positive note, its adjusted EPS increased 16.5% year-over-year, reflecting underlying growth, while its total assets under management grew 4.3% from the year-ago quarter, reaching $1.5 trillion.
Wall Street analysts are cautious about PRU’s stock, with a "Hold" rating overall. Among 18 analysts covering the stock, two recommend "Strong Buy," 14 advise “Hold,” and two suggest “Strong Sell.” The mean price target for PRU is $117.69, which indicates a 19.3% potential upside from the current levels.
