Prudential Q4 net income rises

Reuters02-04 05:28
Prudential Q4 net income rises

Overview

  • Financial services firm's Q4 net income rises to $905 mln from a loss last year

  • Company suspends new sales in Japan for 90 days due to misconduct issues

Outlook

  • Company plans to repurchase up to $1 bln of stock in 2026

Result Drivers

  • U.S. BUSINESSES - Higher net investment spread results and favorable underwriting outcomes drove increased adjusted operating income in Q4

  • INTERNATIONAL BUSINESSES - Improved net investment spread results and underwriting outcomes contributed to growth in adjusted operating income

  • PGIM PERFORMANCE - Higher expenses and lower seed and co-investment income impacted PGIM's adjusted operating income

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Net Income

$905 mln

Q4 Adjusted Operating Income

Miss

$1.17 bln

$2.10 bln (1 Analyst)

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the life & health insurance peer group is "buy."

  • Wall Street's median 12-month price target for Prudential Financial Inc is $121.00, about 8.3% above its February 2 closing price of $111.72

  • The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nBw7cxYzla

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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