Prudential Financial Inc (NYSE: PRU) stock fell over 2.6% on 2nd May, 2019 (As of 4:56 pm GMT-4; Source: Google finance) after the company missed the earnings estimate for the first quarter of FY 19. PRU has posted the net income attributable to Prudential Financial of $932 million compared to $1.363 billion for the year-ago quarter. Prudential’s net income was weighed down by higher deferred and long-term-employee compensation expenses. The higher pay was related to both corporate staff and the company’s PGIM global investment-management unit, which has $1.22 trillion in assets Assets under management amounted to $1.456 trillion at March 31, 2019, compared to $1.389 trillion a year earlier. Net income attributable to Prudential Financial, Inc. amounted to $932 million for the first quarter of 2019, compared to $1.363 billion for the year-ago quarter.
Meanwhile, the net income for the current quarter reflects a pre-tax increase of $454 million in recorded asset values and $403 million in recorded liabilities representing changes in value which are generally expected to ultimately accrue to contract holders. Net income for the year-ago quarter included $64 million of pre-tax net realized investment gains and related charges and adjustments. PRU in the first quarter of FY 19 has reported the adjusted earnings per share of $3, missing the analysts’ estimates for the adjusted earnings per share of $3.14, as per Zacks Consensus Estimate.
Moreover, for the first quarter of 2019, U.S. Workplace Solutions, that includes the Retirement and Group Insurance segments, had reported the adjusted operating income of $304 million, compared to $372 million in the year-ago quarter. The Retirement segment’s adjusted operating income fell to $251 million for the first quarter, from $317 million in the year-ago quarter due to a lower contribution from net investment spread results and higher expenses, partially offset by higher reserve gains which includes the impact of business growth. The Group Insurance segment’s adjusted operating income fell to $53 million in the current quarter, compared to $55 million in the year-ago quarter. However, the adjusted results have increased by $3 million from the year-ago quarter reflecting business growth. Further, U.S. Individual Solutions, that includes the Individual Annuities and Individual Life segments, has reported adjusted operating income of $577 million for the first quarter of 2019, compared to $555 million in the year-ago quarter. International Insurance, that comprises the Life Planner Operations and Gibraltar Life & Other Operations, reported the adjusted operating income of $922 million for the first quarter of 2019, compared to $856 million in the year-ago quarter.