NYSE$PRU

Prudential Financial Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Prudential's Q1 2022 results were announced, revealing a net loss but solid operating earnings driven by strong variable investment income.

Prudential Financial reported a net loss of $31 million, or $0.10 per share, compared to a net income of $2.828 billion, or $6.98 per share, in the same quarter last year. After-tax adjusted operating income was $1.218 billion, or $3.17 per share, versus $1.618 billion, or $3.99 per share, for the year-ago quarter. The results reflect solid operating earnings, including strong variable investment income, offsetting the impact of elevated COVID-19 mortality.

  • Net loss attributable to Prudential Financial, Inc. was $31 million, or $0.10 per Common share.
  • After-tax adjusted operating income reached $1.218 billion, or $3.17 per Common share.
  • Assets under management totaled $1.620 trillion.
  • Capital returned to shareholders amounted to $837 million, including $375 million in share repurchases and $462 million in dividends.

Headline financials

Total Revenue

$13.2B

Previous: $17B-22.0%
EPS (adj)

$3.17

Previous: $4.11-22.9%
Net Income

-$31M

Previous: $2.83B-101.1%
Operating Income

-$115M

Previous: $3.41B-103.4%
Gross Profit

$3.1B

Previous: $6.73B-54.0%
Cash & Equivalents

$14.1B

Previous: $16.1B-12.5%
Total Assets

$878B

Previous: $907B-3.2%

Revenue & EPS history

Prudential · Revenue · Quarterly

$13.2B

Q1 2022-22%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Prudential · $1.57B total across 4 segments · Q1 2022

  • U.S. Businesses
    $943M
  • International Businesses
    $801M-8.0%
  • PGIM
    $188M-71.1%
  • Corporate & Other
    -$366M-28.0%

Forward guidance

The company is focused on becoming a higher growth, less market sensitive, and more nimble company. They are making progress on their $750 million cost savings plan and investing in solutions and customer experience to drive sustainable business growth.

Tailwinds

  • Delivered solid operating earnings for the first quarter.
  • Strong variable investment income more than offset the impact of elevated COVID-19 mortality.
  • Completed the sales of our Full Service business and a portion of our traditional variable annuities block.
  • Advanced our emerging markets strategy by reaching an agreement to acquire a minority stake in South Africa’s Alexander Forbes.
  • Made further progress towards completing our $750 million cost savings plan.

Headwinds

  • Net loss attributable to Prudential Financial, Inc. of $31 million or $0.10 per Common share.
  • After-tax adjusted operating income of $1.218 billion or $3.17 per Common share versus $1.618 billion or $3.99 per share for the year-ago quarter.
  • Book value per Common share of $115.28 versus $145.05 per share for the year-ago quarter.
  • PGIM assets under management of $1.415 trillion were down 2% from the year-ago quarter, reflecting the impact of rising interest rates and spreads on fixed income assets and unfavorable foreign exchange impacts.
  • Net outflows in the current quarter totaled $2.6 billion as withdrawals and benefits exceeded sales of $2.3 billion, reflecting the episodic nature of Funded Pension Risk Transfer and International Reinsurance transactions that totaled $0.7 billion in the quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.5%

Avg return

Earnings day

-0.8%

Avg return

5 days after

-0.2%

Avg return

30 days after

48%

35 / 73 earnings

Positive

+7.5%

Q3 2009

Best reaction

-13.2%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.0%-0.8%+4.4%
Q4 2025-2.3%-4.6%-9.4%
Q3 2025+1.9%+3.8%+7.0%
Q2 2025-2.8%+0.5%+5.9%
Q1 2025-1.2%-0.8%+1.1%
Q4 2024-3.3%-5.0%-5.7%
Q3 2024-2.2%-3.7%+3.3%
Q2 2024-12.0%-14.6%-3.3%
Q1 2024+0.3%+0.3%+5.9%
Q4 2023+6.2%+2.8%+7.8%
Q3 2023+0.3%+0.4%+6.9%
Q2 2023-1.2%+0.0%-1.9%
Q1 2023-5.7%-4.9%-7.2%
Q4 2022+2.2%+0.9%-11.2%
Q3 2022+0.1%-0.1%+2.4%
Q2 2022-2.8%-3.2%-4.7%
Q1 2022+2.9%-1.6%-2.5%
Q4 2021+3.1%+5.7%-7.3%
Q3 2021+2.3%-0.4%-7.1%
Q2 2021-0.3%+4.6%+4.8%
Q1 2021+2.7%+4.4%+6.7%
Q4 2020-1.0%+0.6%+12.0%
Q3 2020-4.3%-3.6%+19.6%
Q2 2020+4.3%+5.5%+5.6%
Q1 2020-8.1%+0.2%+11.2%
Q4 2019+4.5%+3.5%-21.0%
Q3 2019-1.0%-0.1%-2.4%
Q2 2019-11.0%-16.0%-21.7%
Q1 2019-3.7%-3.5%-12.6%
Q4 2018-1.8%-1.6%+0.3%
Q3 2018-1.4%-4.8%-12.7%
Q2 2018-1.0%-1.2%-2.6%
Q1 2018-8.0%-5.3%-6.9%
Q4 2017-6.9%-2.8%-0.6%
Q3 2017+2.2%+1.7%+4.5%
Q2 2017-3.6%-2.4%-9.8%
Q1 2017+1.5%+0.7%-1.1%
Q4 2016+1.7%+3.0%+4.2%
Q3 2016+3.0%+5.5%+20.8%
Q2 2016-1.5%+4.5%+7.5%
Q1 2016-2.1%
Q4 2015-8.8%
Q3 2015-0.8%
Q2 2015-0.5%
Q1 2015+2.1%
Q4 2014-6.0%
Q3 2014-3.4%
Q2 2014+0.8%
Q1 2014+3.9%
Q4 2013-0.3%
Q3 2013+2.8%
Q2 2013-0.4%
Q1 2013+4.9%
Q4 2011-0.7%
Q4 2012-2.7%
Q3 2012-9.1%
Q2 2012+3.6%
Q1 2012-13.2%
Q2 2011-1.0%
Q3 2011+0.5%
Q1 2011+1.3%
Q2 2010+2.8%
Q4 2010+2.8%
Q3 2010-1.1%
Q1 2009+4.3%
Q1 2010+2.7%
Q4 2009+2.3%
Q4 2007+2.3%
Q3 2008+7.5%
Q3 2009+7.5%
Q4 2008+2.9%
Q2 2009+2.9%
Q2 2008+2.9%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro