Prudential Financial Intrinsic Value Calculation – PRUDENTIAL FINANCIAL Reports Fiscal Year 2022 Fourth Quarter Earnings Results

Earnings Overview

On February 7 2023, PRUDENTIAL FINANCIAL ($NYSE:PRU) reported their financial results for the fourth quarter of 2022, which ended on December 31 2022. Revenue amounted to -0.6 billion, representing a decrease of 146.3% from Q4 of the previous year. Net income dropped by 16.2%, amounting to 11.6 billion.

Transcripts Simplified

Prudential Financial reported pre-tax adjusted operating income of $4.7 billion or $9.46 per share for 2022, and $1.2 billion or $2.42 per share in the fourth quarter. The GAAP net loss for the quarter was $1.53 per share, including net realized investment losses, related charges and adjustments, and a goodwill impairment due to the reduced estimated fair value of assurance. PGIM, Prudential’s global investment manager, experienced positive institutional net flows but retail outflows in the fourth quarter, primarily in fixed income.

Earnings of the US businesses reflected less favorable variable investment income, offset by higher rates on spread income and more favorable underwriting. International businesses saw a decrease in earnings due to lower spread income and less favorable variable investment income and underwriting.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Prudential Financial. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Prudential Financial. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Prudential Financial. More…

Key Ratios Snapshot

Some of the financial key ratios for Prudential Financial are shown below. More…

Market Price

PRUDENTIAL FINANCIAL reported its Fiscal Year 2022 Fourth Quarter Earnings results on Tuesday, with stock opening at $101.4 and closing at $102.8, up by 0.7% from its last closing price of $102.1. PRUDENTIAL FINANCIAL is a leading global financial services company offering a wide range of services, including life insurance, annuities, investments, retirement planning, and asset protection solutions for individuals and businesses. The company’s strong financial performance was driven by increased sales in life insurance and related products, as well as strong investment performance in the quarter.

The company also announced a new $1 billion share repurchase program to be completed over the next twelve months. The increased dividend and share repurchase program are evidence of their commitment to creating shareholder value over the long-term. Live Quote…

Analysis – Prudential Financial Intrinsic Value Calculation

At GoodWhale, we provide an analysis of PRUDENTIAL FINANCIAL‘s wellbeing. Using our proprietary Valuation Line, we have calculated that the fair value of PRUDENTIAL FINANCIAL’s share is around $95.0. This can provide investors with an opportunity to assess their decision to enter the market or to stay away for the time being. More…

Peers

Prudential Financial Inc is one of the leading providers of financial services in the United States. The company offers a wide range of products and services, including life insurance, annuities, retirement services, and investment management. Prudential Financial Inc has a strong presence in the life insurance market, with a market share of 10.8%. The company’s main competitors in the life insurance market are Genworth Financial Inc, Kansas City Life Insurance Co, and Citizens Inc.

– Genworth Financial Inc ($NYSE:GNW)

Genworth Financial is a Fortune 500 insurance holding company with headquarters in Richmond, Virginia. The company operates through three segments: Life and Long-Term Care Insurance, Mortgage Insurance, and Runoff. As of December 31, 2020, Genworth had $2.35 billion in total assets and $15.4 billion in total liabilities. The company has a market capitalization of $2.35 billion and a return on equity of 6.09%.

Genworth Financial offers a variety of insurance products, including life insurance, long-term care insurance, and mortgage insurance. The company also provides a range of services, such as asset management, investment banking, and risk management. Genworth Financial has operations in the United States, Canada, Australia, Europe, and Asia.

– Kansas City Life Insurance Co ($OTCPK:KCLI)

The company has a market cap of 288.08M as of 2022. The company provides life insurance and annuity products. It operates through the following segments: Individual Insurance, Group Insurance, Retirement Plans, and Investments. The Individual Insurance segment offers whole life, term life, and universal life insurance products. The Group Insurance segment provides group life and health insurance products. The Retirement Plans segment offers 401(k), pension, and annuity products. The Investments segment invests in equity and fixed income securities.

– Citizens Inc ($NYSE:CIA)

Citizens Inc. is a financial services company with a market cap of 134.91M as of 2022. The company offers a range of products and services including banking, insurance, investments, and retirement planning. Citizens Inc. has a strong focus on customer service and providing a high level of financial security for its clients.

Summary

Investors should consider the latest results from PRUDENTIAL FINANCIAL, which reported total revenue of USD -0.6 billion and net income of USD 11.6 billion for the fourth quarter of FY2022. This represents a decrease of 146.3% and 16.2%, respectively, compared to the same period the previous year. Overall, this was a disappointing quarter for the company and indicates that investors should proceed with caution when considering PRUDENTIAL FINANCIAL as a potential investment. It is important to conduct further research to evaluate the company’s long-term prospects before making any decisions.