How Will Prudential Financial (PRU) Stock React to Today's Earnings Results?

Prudential (PRU) will report its 2015 third quarter earnings results after the market close today.
By Rachel Graf ,

NEW YORK (TheStreet) -- Prudential Financial (PRU) - Get Report  is scheduled to report its 2015 third quarter financial results after the market close this afternoon.

Analysts are expecting the financial services company to post a year over year rise in earnings per share and a decline in revenue.

Analysts surveyed by Thomson Reuters have forecast for earnings of $2.42 per share on revenue of $11.2 billion for the most recent quarter.

Last year, Prudential Financial reported earnings of $2.20 per share on revenue of $11.8 billion for the 2014 third quarter.

Shares of the company are sliding by 0.33% to $84.74 in early afternoon trading on Wednesday.

Separately, TheStreet Ratings team rates PRUDENTIAL FINANCIAL INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate PRUDENTIAL FINANCIAL INC (PRU) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 13.1%. Since the same quarter one year prior, revenues slightly increased by 4.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • PRUDENTIAL FINANCIAL INC has improved earnings per share by 37.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PRUDENTIAL FINANCIAL INC turned its bottom line around by earning $3.08 versus -$1.61 in the prior year. This year, the market expects an improvement in earnings ($10.50 versus $3.08).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 29.0% when compared to the same quarter one year prior, rising from $1,090.00 million to $1,406.00 million.
  • PRU's debt-to-equity ratio of 0.94 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.
  • The gross profit margin for PRUDENTIAL FINANCIAL INC is currently lower than what is desirable, coming in at 33.63%. Regardless of PRU's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, PRU's net profit margin of 10.25% compares favorably to the industry average.
  • You can view the full analysis from the report here: PRU

Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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