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Prudential Misses Earnings Estimates, Net Income Falls Year-over-Year

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Fall in net income

Prudential Financial (PRU) witnessed a substantial decline of ~46.7% in its net income in 2Q17 compared to its net income in 2Q16. In 2Q17, Prudential Financial reported 2Q17 net income of $491 million compared to $921 million in 2Q16. 

Prudential Financial posted earnings per share (or EPS) of $2.09 in 2Q17, which missed the analysts’ estimate of $2.70. However, its 2Q17 EPS increased 13.6% from its 2Q16 EPS. Prudential Financial is expected to post EPS of $2.70 in 3Q17, which reflects an increase of 29.2% from its EPS posted in 2Q17.

In 2Q17, Prudential Financial reported adjusted operating income on a post-tax basis of $919 million compared to $829 million in 2Q16. In 2Q17, the company’s asset management business reported strong net flows of $7.7 billion. 

The company’s total assets under management (or AUM) in 2Q17 stood at $1.1 trillion. The company’s asset management business reported strong numbers in 2Q17 on the back of strong investment performance.

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Revenue per share

Prudential Financial (PRU) has revenue per share of $137.43 on trailing-12-month (or TTM) basis. The revenue per share of other insurance companies (IYF) on a TTM basis are as follows:

  • American International Group (AIG): $49.87
  • Chubb Ltd. (CB): $68.96
  • MetLife (MET): $57.93
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