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

Free $100 Forex No-Deposit Bonus

Prudential Financial Inc (NYSE: PRU) stock lost over 4.1% on 5th November (as of 12:00 pm GMT-5; Source: Google finance) post the third quarter of FY 19 performance on concerns over weakness in its international business. The company has reported third-quarter net income of $1.43 billion as compared to $1.67 billion in the year-ago period. On an adjusted basis, the operating income declined to $1.33 billion, or $3.22 per share, from $1.35 billion, or $3.15 per share. PRU’s operating income for its international insurance segment have declined by 11.1% to $791 million.

Moreover, Corporate & Other Operations reported decline in its loss, on an adjusted operating income basis, of $281 million in the third quarter of 2019, from the loss of $374 million in the year-ago quarter. The decline in loss from the year-ago quarter is driven by lower expenses, including for employee benefit and compensation plans tied to Company stock and equity market performance, and higher net investment income, which was partially offset by high interest expense.

Prudential Financial has reported adjusted operating income of $232 million in the third quarter, compared to $230 million in the year-ago quarter. The rise of this income is due to higher asset management fees, from an increase in average assets under management, and higher other related revenues, which was mostly offset by higher expenses.

U.S. Workplace Solutions, has reported adjusted operating income of $392 million for the third quarter of 2019, versus $298 million in the year-ago quarter. Retirement Segment has reported the adjusted operating income of $302 million in the third quarter, compared to $239 million in the year-ago quarter. The growth has come from higher net investment spread results, higher reserve gains, and higher fee income. Group Insurance Segment has reported adjusted operating income of $90 million in the third quarter, compared to $59 million in the year-ago quarter. The growth is due to more favorable underwriting results and lower expenses.

PRU in the third quarter of FY 19 has reported the adjusted earnings per share of $3.22, beating the analysts’ estimates for the adjusted earnings per share of $3.07, according to the analysts surveyed by FactSet.

Additionally, the company has returned to shareholders the capital of $1.4 billion in the quarter compared to $0.8 billion for the year-ago quarter, comprising of dividends of $1 per Common share.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.