Prudential Financial Boosts Dividend 10%; Swings to $661 Million Q3 Loss on Charges; Adjusted Net Misses View (PRU)
Insurance and financial services giant Prudential Financial Inc. ( PRU ) late Wednesday posted adjusted third quarter earnings results that missed expectations but lifted its annual dividend payout by 10%.
The Newark, NJ-based company reported a third quarter net loss of $661 million, or -$1.41 per share, compared with a net profit of $1.56 billion, or $3.18 per share, in the year-ago period. Excluding special items and investment gains and losses, adjusted operating income was $1.53 per share.
Revenue surged 36% from last year to $13.25 billion.
On average, Wall Street analysts expected a much higher profit of $1.68 per share, albeit on much lower revenue of $10.77 billion.
On a positive note, PRU boosted its annual dividend payout by 10.3%. The new dividend of $1.60 per share (up from $1.45) will be paid on Dec. 14 with an ex-dividend date of Nov. 16. Unlike most major U.S. companies that pay quarterly dividends, Prudential pays its dividend just once per year.
Prudential shares fell $1.15, or -2.15%, in premarket trading Thursday. The stock has gained about 10.5% year-to-date.
The Bottom Line
Shares of Prudential Financial ( PRU ) will now have a 2.89% dividend yield, based on the higher dividend payout and last night's closing stock price of $55.39. The stock has technical support in the $50-$52 price area. If the shares can firm up, we see overhead resistance around the $60 price level.
Prudential Financial Inc. ( PRU ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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