Share of Prudential (PRU) are flat in the early going, despite the company beating Q3 estimates by 26 cents.
The company reported net income of $1.1 billion, or $2.35 per common share, versus a net loss of $118 million, or 25 cents per common share, a year earlier. The company's financial services businesses earned $1.09 billion, or $2.35 per share, reversing a year-ago loss of $118 million, or 25 cents a year ago. The company's biggest improvement was seen in its investment division where earnings rose to $314, reversing a loss of $182 million last year. Individual annuity gross sales rose to $5.9 billion, from $2.5 billion a year ago.
"Sales and net flows were solid across our domestic businesses, with variable annuity sales achieving record levels for the second consecutive quarter," Prudential Chief Executive John Strangfeld said in a statement.
The company raised its guidance for the year, and now expects profit between $5.40 and $5.60 a year, up from a prior forecast of $5.00 to $5.20 per share. Wall Street analysts were expecting profit of $5.47 per share.
The Bottom Line
We recently removed shares of PRU from our "recommended" list on Oct.1, when the stock was trading at $49.91. The company has a 1.25% dividend yield, based on last night's closing stock price of $46.56. The stock has technical support in the $42-$4 price area. If the shares can firm up, we see overhead resistance around the $50-$53 price levels. We would remain on the sidelines for now.
Prudential (PRU) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
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