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New Jersey-based Prudential Financial, Inc. (PRU) provides insurance, investment management, and other financial products and services worldwide. With a market cap of $36.2 billion, Prudential operates through PGIM, Retirement Strategies, Group Insurance, Individual Life, and International Businesses segments.
The insurance giant is expected to release its Q2 earnings after the market closes on Wednesday, Jul. 30. Ahead of the event, analysts expect Prudential to report a profit of $3.24 per share, down 4.4% from $3.39 per share reported in the year-ago quarter. The company has missed Wall Street’s adjusted EPS projections twice over the past four quarters while exceeding the estimates on two other occasions.
For the full fiscal 2025, analysts expect PRU to deliver an EPS of $13.45, up 6.6% from $12.62 in fiscal 2024. In fiscal 2026, its earnings are expected to further grow 9.4% year-over-year to $14.72 per share.
PRU has plunged 16.4% over the past 52 weeks, significantly underperforming the S&P 500 Index’s ($SPX) 13.4% returns and the Financial Select Sector SPDR Fund’s (XLF) 22.3% surge during the same time frame.
Prudential Financial’s stock prices dipped nearly 1% in the trading session after the release of its mixed Q1 results on Apr. 30. While the company’s net investment income observed a significant improvement, its premiums observed a steep decline. Prudential’s overall revenues came in at $13.5 billion, missing the Street expectations by a high-single-digit figure. Meanwhile, its adjusted EPS for the quarter came in at $3.29, beating the consensus estimates by two cents.
PRU holds a consensus “Hold” rating overall as analysts remain cautious about the stock’s prospects. Of the 17 analysts covering the stock, only two recommend “Strong Buy,” while 13 suggest “Hold” and two advocate a “Strong Sell” rating. Its mean price target of $116.13 represents an 11.4% premium to current price levels.
