NYSE$PRU

Prudential Financial Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Prudential Financial reported mixed results for Q1 2023, with net income increasing significantly but adjusted operating income decreasing due to lower investment and fee income, as well as elevated mortality experience.

Prudential Financial's Q1 2023 net income attributable to the company was $1.462 billion, or $3.93 per share, compared to a net loss of $493 million, or $1.33 per share, in the year-ago quarter. After-tax adjusted operating income was $990 million, or $2.66 per share, compared to $1.191 billion, or $3.10 per share, in the year-ago quarter. The company's results were influenced by underlying business growth, a higher interest rate environment, lower variable investment and fee income, and elevated seasonal mortality experience.

  • Net income attributable to Prudential Financial, Inc. was $1.462 billion, or $3.93 per Common share.
  • After-tax adjusted operating income was $990 million, or $2.66 per Common share.
  • Assets under management were $1.417 trillion.
  • Capital returned to shareholders totaled $718 million, including $250 million in share repurchases and $468 million in dividends.

Headline financials

Total Revenue

$17B

Previous: $13.2B+29.0%
EPS (adj)

$2.66

Previous: $3.17-16.1%
Assets Under Management

$1.42T

No prior period
Net Income

$1.46B

Previous: -$31M+4816.1%
Operating Income

$1.87B

Previous: -$115M+1727.8%
Gross Profit

$5.08B

Previous: $3.1B+64.0%
Cash & Equivalents

$17.4B

Previous: $14.1B+23.7%
Total Assets

$709B

Previous: $878B-19.2%

Revenue & EPS history

Prudential · Revenue · Quarterly

$17B

Q1 2023+29%vs Q1 2022
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Revenue by segment

Prudential · $1.27B total across 4 segments · Q1 2023

  • International Businesses
    $840M+4.9%
  • U.S. Businesses
    $760M-19.4%
  • PGIM
    $151M-19.7%
  • Corporate & Other
    -$485M-32.5%

Forward guidance

The company is focused on becoming a higher growth, less market sensitive, and more nimble company. They are advancing their programmatic M&A strategy and continuing to invest in products and solutions that will drive long-term, sustainable growth and deliver value for their customers.

Tailwinds

  • Underlying business growth
  • Benefits from a higher interest rate environment
  • Advancing programmatic M&A strategy
  • Expanding alternative capabilities
  • Generating additional fee-based revenue

Headwinds

  • Lower variable investment and fee income
  • Elevated seasonal mortality experience
  • Lower net fee income
  • Lower net investment spread results
  • Less favorable underwriting results

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 2023

Historical avgQ1 2023

-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%

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