NYSE$PRU

Prudential Financial Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Prudential Financial's Q4 2019 earnings were announced, with net income attributable to Prudential Financial, Inc. at $1.128 billion and after-tax adjusted operating income at $950 million.

Prudential Financial, Inc. reported a net income of $1.128 billion, or $2.76 per share, for Q4 2019, compared to $842 million, or $1.99 per share, for the same quarter in 2018. The after-tax adjusted operating income was $950 million, or $2.33 per share, for Q4 2019, compared to $1.035 billion, or $2.44 per share, for the fourth quarter of 2018. The company made progress on its strategy to provide financial opportunity and drive efficiency.

  • Net income attributable to Prudential Financial, Inc. was $1.128 billion or $2.76 per share, compared to $842 million or $1.99 per share for the year-ago quarter.
  • After-tax adjusted operating income was $950 million or $2.33 per share, compared to $1.035 billion or $2.44 per share for the year-ago quarter.
  • Capital returned to shareholders of $906 million, compared to $752 million for the year-ago quarter.
  • Assets under management amounted to $1.551 trillion, compared to $1.377 trillion for the year-ago.

Headline financials

Total Revenue

$17.5B

Previous: $17.8B-1.9%
EPS (adj)

$2.33

Previous: $2.44-4.5%
Net Income

$1.13B

Previous: $842M+34.0%
Operating Income

$1.34B

No prior period
Gross Profit

$0.00

Previous: $0.00
Cash & Equivalents

$16.3B

Previous: $15.4B+6.3%
Total Assets

$897B

Previous: $815B+10.0%

Revenue & EPS history

Prudential · Revenue · Quarterly

$17.5B

Q4 2019-1.9%vs Q4 2018
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Prudential · $347M total across 3 segments · Q4 2019

  • International Businesses
    $797M
  • PGIM
    $288M
  • Corporate & Other
    -$738M

Forward guidance

Prudential remains focused on enhancing customer experience, delivering on cost savings, increasing earnings in international growth markets, and mitigating the effect of low interest rates to drive future earnings growth.

Tailwinds

  • Enhancing customer experience
  • Delivering on cost savings initiative
  • Increasing percentage of earnings in international growth markets
  • Taking actions to mitigate the effect of low interest rates
  • Focusing on financial opportunity

Headwinds

  • Risk of being unable to execute strategy due to market or competitive conditions
  • Potential effects of future developments on Prudential Financial, Inc. and its subsidiaries
  • Fluctuating effects of items on underlying profitability
  • External and potentially volatile capital and currency market conditions
  • Accounting impact associated with insurance liabilities

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 Q4 2019

Historical avgQ4 2019

-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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