Prudential Financial Inc. Fourth Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Prudential Financial, Inc. (NYSE:PRU) will unveil its latest earnings on Wednesday, February 8, 2012. Prudential Financial offers a wide range of financial products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services.

Prudential Financial, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.76 per share, a decline of 1.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.72. Between one and three months ago, the average estimate moved down. It has risen from $1.70 during the last month. Analysts are projecting profit to rise by 0.3% versus last year to $6.25.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the third quarter, the company reported net income of $1.07 per share versus a mean estimate of profit of $1.56 per share. In the second quarter, the company beat estimates by 16 cents.

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Wall St. Revenue Expectations: On average, analysts predict $10.2 billion in revenue this quarter, a rise of 25.5% from the year ago quarter. Analysts are forecasting total revenue of $39.41 billion for the year, a rise of 27.2% from last year’s revenue of $30.98 billion.

Analyst Ratings: Analysts are bullish on this stock with 16 analysts rating it as a buy, none rating it as a sell and three rating it as a hold.

A Look Back: In the third quarter, profit rose 23.3% to $1.53 billion ($3.06 a share) from $1.24 billion ($2.46 a share) the year earlier, but fell short analyst expectations. Revenue rose 49.7% to $14.92 billion from $9.96 billion.

Key Stats:

The increase in profit in the third quarter broke a streak of three consecutive quarters of year-over-year profit decreases. Net income dropped 22.2% in the second quarter, 12.8% in the first quarter and 90.5% in the fourth quarter of the last fiscal year.

Revenue has gone up for three straight quarters. It rose 10.8% in the second quarter from the year earlier and 9.6% in the first quarter.

Stock Price Performance: During November 4, 2011 to February 2, 2012, the stock price had risen $7.63 (15.1%) from $50.69 to $58.32. The stock price saw one of its best stretches over the last year between September 9, 2011 and September 16, 2011 when shares rose for six-straight days, rising 11.5% (+$5.16) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10-straight days, falling 14.5% (-$7.59) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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