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Prudential Financial (PRU) Q3 Earnings: Is a Beat in Store?

Prudential Financial, Inc. PRU is slated to report third-quarter 2017 results on Nov 1, after the market closes. Last quarter, the company delivered a negative earnings surprise of 22.59%. Let’s see how things are shaping up for this announcement.

Factors to be Considered This Quarter

Expanded product offerings and broader distribution capabilities likely have benefited Prudential’s third-quarter results. The Zacks Consensus Estimate is pegged at $2.71 per share, up 1.9% year over year.

The company benefited from a gradually improving interest rate environment favoring investment income from higher invested asset balances.

Prudential’s International businesses likely have generated higher sales. Continued growth likely has favored better results.

U.S. Retirement Solutions and Investment Management likely have benefited from enhancements made to annuities risk management strategy. The Zacks Consensus Estimate for pre-tax operating profit is pegged at $976 million.

Share buyback likely has added to the bottom-line upside.

However, increase in expenses likely has weighed on the desired margin expansion.

What Our Quantitative Model Predicts

Our proven model shows that Prudential is likely to beat estimates this quarter. This is because a stock has the right combination of two main ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for an earnings beat.

Zacks ESP: Prudential has an Earnings ESP of +0.07%, which indicates a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they are reported with our">Earnings ESP Filter.

Prudential Financial, Inc. Price and EPS Surprise

Zacks Rank: Prudential carries a Zacks Rank #2, which increases the predictive power of ESP and together with a positive ESP, the stock’s chances of an earnings beat are raised high.

Other Stocks to Consider

Some other stocks worth considering from the finance sector with the right combination of elements to surpass expectations this quarter are as follows:

Apollo Investment Corporation AINV is set to report third-quarter earnings on Nov 3 with an Earnings ESP of +2.13% and a Zacks Rank of 3 as well. You can see the complete list of today’s Zacks Rank #1 stocks here.

Ares Capital Corporation ARCC has an Earnings ESP of +2.86%. The Zacks #3 Ranked company is slated to report third-quarter earnings on Nov 2.

American Equity Investment Life Holding Company AEL has an Earnings ESP of +0.40% and holds a Zacks Rank #2. The company is set to report third-quarter earnings on Nov 6.

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Ares Capital Corporation (ARCC): Free Stock Analysis Report
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Prudential Financial, Inc. (PRU): Free Stock Analysis Report
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