Prudential Financial Inc.
) is scheduled to report second-quarter 2014 results on Aug 6.
In the last quarter, this life insurer delivered a 5.7% positive
earnings surprise. The average beat for the trailing four quarters
Let's see what factors might have influenced the earnings report
this time around.
Factors Likely to Influence Q2 Results
A soft interest rate environment rate will keep investment income
under pressure. Reinvestment yields primarily for investments in
fixed maturity securities and commercial mortgage loans will remain
In addition, limited wage inflation, unemployment and intense
competition are expected to weigh on U.S. Group insurance results.
However, Prudential Financial is will likely witness higher demand
for retirement benefits products due to an aging American
population with baby boomers entering retirement. Its increased
focus on Asset Management, Annuities and International business
would also drive results.
Our proven model does not conclusively show that Prudential
Financial is likely to beat earnings this quarter. That is because
a stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. However, that is
not the case here as you will see below.
: Prudential Financial's Most Accurate estimate is pegged at
$2.34 per share, which is below the Zacks Consensus Estimate of
$2.35. The Earnings ESP is thus -0.43%.
: Prudential Financial has a Zacks Rank #3 (Hold). Though Zacks
Rank #1, 2 or 3 increases the predictive power of ESP, the
company's ESP of -0.43% makes surprise prediction difficult.
Other Stocks to Consider
Here are some companies you may want to consider as our model shows
that these have the right combination of elements to post an
earnings beat this quarter:
National General Holdings Corp. (
) has an Earnings ESP of +8.00% and Zacks Rank #2 (Buy).
) has an Earnings ESP of +4.76% and a Zacks Rank #2.
Voya Financial, Inc. (
) has an Earnings ESP of +2.86% and a Zacks Rank #3.
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PRUDENTIAL FINL (PRU): Free Stock Analysis
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NATIONAL GNL HL (NGHC): Free Stock Analysis
VOYA FINANCIAL (VOYA): Free Stock Analysis
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