The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Prudential Financial met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share expanded significantly.
Gross margins dropped, operating margins grew, and net margins increased.
Prudential Financial reported revenue of $10.26 billion. The five analysts polled by S&P Capital IQ hoped for a top line of $10.17 billion. GAAP sales were 44% higher than the prior-year quarter's $8.11 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.97. The 19 earnings estimates compiled by S&P Capital IQ averaged $1.77 per share on the same basis. GAAP EPS of $1.45 for Q4 were 215% higher than the prior-year quarter's $0.46 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 7.8%, 260 basis points worse than the prior-year quarter. Operating margin was 7.8%, 630 basis points better than the prior-year quarter. Net margin was 5.9%, 370 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $10.19 billion. On the bottom line, the average EPS estimate is $1.68.
Next year's average estimate for revenue is $41.21 billion. The average EPS estimate is $7.07.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Prudential Financial is outperform, with an average price target of $68.81.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.