NYSE$PRU

Prudential Financial Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Prudential's Q2 2022 results reflected macroeconomic trends and strategic progress in transforming businesses.

Prudential Financial reported a net loss attributable to the company of $565 million, or $1.53 per share, compared to a net income of $2.158 billion, or $5.40 per share, in the year-ago quarter. After-tax adjusted operating income was $664 million, or $1.74 per share, versus $1.440 billion, or $3.60 per share, for the year-ago quarter. The results were impacted by macroeconomic trends, strengthening of Individual Life reserves, and strategic actions to reduce market sensitivity.

  • Net loss attributable to Prudential Financial, Inc. was $565 million or $1.53 per Common share.
  • After-tax adjusted operating income was $664 million or $1.74 per Common share.
  • Assets under management were $1.410 trillion.
  • Capital returned to shareholders totaled $832 million, including $375 million in share repurchases and $457 million in dividends.

Headline financials

Total Revenue

$13B

Previous: $15.9B-18.2%
EPS (adj)

$1.74

Previous: $3.79-54.1%
Net Income

-$565M

Previous: $2.16B-126.2%
Operating Income

-$511M

Previous: $2.77B-118.4%
Gross Profit

$2.37B

Previous: $6B-60.5%
Cash & Equivalents

$14.4B

Previous: $15.1B-5.2%
Total Assets

$696B

Previous: $926B-24.9%

Revenue & EPS history

Prudential · Revenue · Quarterly

$13B

Q2 2022-18.2%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Prudential · $872M total across 4 segments · Q2 2022

  • International Businesses
    $555M-30.9%
  • U.S. Businesses
    $370M
  • PGIM
    $206M-34.6%
  • Corporate & Other
    -$259M+13.7%

Forward guidance

Prudential is focused on becoming a higher growth and less market sensitive company, expanding access to investing, insurance, and retirement security around the world, and creating sustainable, long-term growth.

Tailwinds

  • Completed the sales of our Full Service business and a significant portion of our traditional variable annuities, which reduced our market sensitivity by 20%.
  • Increasing our presence in Africa through a programmatic acquisition in a key growth market.
  • Continued to expand our products and solutions.
  • Expecting to reach our $750 million cost savings program target one year ahead of schedule.
  • Balance sheet gives us the financial flexibility to navigate through the current macroeconomic environment, while continuing to invest in our businesses and return capital to shareholders.

Headwinds

  • Macroeconomic trends, including rising interest rates, widening credit spreads, and equity market declines.
  • Strengthening of our Individual Life reserves through our annual review of assumptions.
  • Risk of being unable to execute our strategy because of market or competitive conditions or other factors.
  • Lower Other Related Revenues, driven by a decrease in seed and co-investment income, and lower asset management fees.
  • Third-party net outflows of $0.2 billion in the current quarter reflect $8.3 billion of retail outflows mainly from fixed income.

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 Q2 2022

Historical avgQ2 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%

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