Financial stock under pressure: Prudential Financial Inc (NYSE: PRU)

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Prudential Financial Inc (NYSE: PRU) stock fell over 6.8% on 6th May, 2020 (as of 12:53 pm GMT-4; Source: Google finance) after the company reported the net loss attributable to PRU of $271 million versus net income of $932 million for the year-ago quarter. This is due to the company’s insurance and financial services company that has reported lower investment spreads amid market turmoil tied to the new coronavirus. The company posted the adjusted book value per Common share of $99.71 compared to $96.76 per share for the year-ago. The company has completed $1.5 billion senior debt issuance, that includes $0.5 billion Green Bond, intended to cover maturities through 2021. The assets under management amounted to $1.481 trillion compared to $1.456 trillion for the year-ago.

PRU in the first quarter of FY 20 has reported the adjusted earnings per share of $2.32, missing the analysts’ estimates for the adjusted earnings per share of $2.78, according to FactSet. The company had reported the adjusted revenue growth of 35.9 percent to $2.48 billion in the first quarter of FY 20, beating the analysts’ estimates for revenue of $2.47 billion.

Moreover, U.S. Businesses has posted fall in adjusted operating income to $619 million for the first quarter of 2020, compared to $881 million in the year-ago quarter on the back of lower underwriting results, a favorable impact from changes in market conditions on estimates of profitability in the year-ago quarter, lower net fee income, and lower net investment spread results. Retirement segment has posted fall in the adjusted operating income to $245 million in the current quarter, compared to $251 million in the year-ago quarter due to lower reserve gains, partially offset by lower expenses and higher fee income. Group Insurance segment delivered fall in the adjusted operating income to $44 million in the current quarter, compared to $53 million in the year-ago quarter. U.S. Individual Solutions, consisting of Individual Annuities and Individual Life, has delivered fall in the adjusted operating income of $353 million for the first quarter of 2020, compared to $577 million in the year-ago quarter. International Businesses, consisting of Life Planner and Gibraltar Life & Other, adjusted operating income declined to $751 million for the first quarter of 2020, compared to $922 million in the year-ago quarter.

The company has returned capital to shareholders of $945 million in the first quarter compared to $915 million for the year-ago quarter, including dividends of $1.10 per common share, which represents a 4% yield on adjusted book value.

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