Prudential’s International Segment to Be Growth Leader in 2016
Prudential Financial’s (PRU) International Insurance segment reported sales of $781 million on a constant dollar basis in the quarter ended March 31, 2016.
Prudential Financial’s (PRU) operating income for its US Individual Life and Group Insurance segment remained stable for 1Q16 at $146 million, unchanged from 1Q15.
Prudential Financial’s (PRU) US Retirement Solutions and Investment Management division has contracted over the past few quarters, which is largely a reflection of market factors.
Prudential Financial’s (PRU) stock has risen by 20% in the past three months, mainly due to expectations of improved fundamentals.
Prudential Financial (PRU) has been very consistent with dividend payouts to shareholders, which makes the stock a very strong prospect for long-term value investors.
Prudential Financial’s balance sheet and strong risk management have led to the smooth expansion of its global operations.
In 1Q16, Prudential’s revenues fell 4.4% year-over-year to $11.3 billion. On a constant dollar basis, the company saw a decline in its international insurance and US retirement solutions businesses.
China launched the new gold fix mechanism on April 19, 2016, in which gold is priced in the yuan. The Shanghai Gold Exchange set the price at 256.9 yuan, which is $39.71 per gram.
Central banks in developing economies have gone on a gold-buying spree, with China and Russia leading the pack.
China and Russia are selling U.S. Treasuries to prop up their currencies, which lost a lot of value against the dollar last year.
According to the U.S. Department of the Treasury, central banks are selling U.S. Treasuries at the fastest pace since 1978. They’ve sold a total of $123 billion so far this year.
E*TRADE Financial’s (ETFC) stock has increased by 21% over the past three months, backed by a strong operating performance and the deleveraging of its balance sheet.
E*TRADE generated almost 14% of its total DARTs (daily average revenue trades) in 1Q16 through its mobile application. This number has doubled over the past couple of years.
E*TRADE Financial (ETFC) has successfully decreased its total debt to $1 billion, a reduction of ~50% over the past few quarters.
E*TRADE’s loan portfolio ended the March quarter at $4.7 billion. The portfolio contracted by ~$0.3 billion from the prior quarter.
E*TRADE Financial (ETFC) operates its own bank, E*TRADE Bank. This is a federally chartered savings bank that E*TRADE’s broker-dealers utilize to maximize the value of deposits.
E*TRADE Financial (ETFC) continues to see strong activity in the retirement season. ETFC ended 1Q16 with $285 billion in total customer assets compared to $288 billion at the end of 4Q15 and $299 billion in 1Q15.
E*TRADE Financial (ETFC) reported DARTs of 165,122 during 1Q16. That was a decline of 3% from 1Q15 and a rise of 12% from 4Q15.
E*TRADE Financial (ETFC) is expected to report earnings per share of $0.39 in the June quarter and $1.65 for 2016, reflecting strong growth. In 1Q16, E*TRADE beat EPS estimates of $0.33, reporting an adjusted EPS of $0.43.
Payment processors are deploying more of their resources to e-commerce and wearable technology–based solutions.