PRUDENTIAL FINANCIAL Reports Positive Earnings Results for 4th Quarter of FY2022

Earnings Overview

On February 7 2023, PRUDENTIAL FINANCIAL ($NYSE:PRU) announced their financial results for the fourth quarter of FY2022 which revealed a total revenue of USD -0.6 billion, representing a decrease of 146.3% compared to the previous year. Net income for this quarter was recorded at USD 11.6 billion, showing a 16.2% decline year over year.

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. GAAP net loss for the quarter was $1.53 per share due to net realized investment losses and related charges and adjustments. PGIM, Prudential’s global investment manager, experienced third-party net outflows of $11.7 billion in the fourth quarter, driven by public fixed income strategies.

Results of Prudential’s US businesses reflected lower variable investment income, partially offset by higher spread income due to rising interest rates. Earnings of Prudential’s International businesses decreased mainly due to lower spread income and less favorable 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

The stock opened at $101.4 and closed at $102.8, up 0.7% from the previous closing price of $102.1. The company also reported increased customer activities in the form of increased new policy sales, increased policy value, and increased premiums collected. This strong performance signals a positive outlook for PRUDENTIAL FINANCIAL going into the new fiscal year. Live Quote…

Analysis

At GoodWhale, we believe that a good way to analyze the fundamentals of PRUDENTIAL FINANCIAL is to use our features. According to our Star Chart, PRUDENTIAL FINANCIAL has a high health score of 8/10 with regards to their cashflows and debt, so it is capable of sustaining future operations in times of crisis. PRUDENTIAL FINANCIAL is strong in dividend, but weak in asset, growth, and profitability. This makes it a ‘cow’ type of company – one that has the track record of paying out consistent and sustainable dividends. Therefore, investors who are interested in a steady, reliable return could be attracted to PRUDENTIAL FINANCIAL. These investors may want to look out for ways to optimize their returns and reduce their risks with regards to PRUDENTIAL FINANCIAL. GoodWhale provides tools that allow investors to do this, so they can make informed decisions on their investments. 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 in Prudential Financial have been given a mixed bag of news from their fourth quarter FY2022 earnings report. Total revenue for the quarter dropped by 146.3% year-on-year, coming in at a loss of USD -0.6 billion. Despite this, net income still decreased by a more modest 16.2%, coming in at USD 11.6 billion.

This could indicate that Prudential Financial is successfully managing losses while still making gains. Investors should keep an eye on how the company will grow its income and revenue as the year progresses.