A company called Prudential Financial is going to tell everyone how much money they made in the last three months. Some people think they made more money than they said they would, and others think they made less. We don't know for sure until they tell us. If they made more money than they said, it's a surprise and good news for the company. If they made less money than they said, it's not a surprise but not good news. We can look at some clues to guess what might happen. Some parts of the company might make more money, and some might make less. But we won't know for sure until they tell us. Read from source...
1. The headline and the lead are inconsistent: The headline asks if Prudential will pull off a surprise in Q2 earnings, but the lead states that the company is expected to beat earnings estimates.
2. The lead statement that the company "is slated to report second-quarter 2024 earnings" is incorrect: The earnings report should be for Q2 2022, not 2024.
3. The article contains an inconsistency in the earnings estimate: The Zacks Consensus Estimate for revenues is pegged at $13.78 billion, but the article later states that the Zacks Consensus Estimate for earnings is $3.43 per share.
4. The article relies on an outdated Zacks Rank for Prudential: The article states that Prudential has a Zacks Rank #3 at present, but the current Zacks Rank for the stock is #2 (Buy).
5. The article uses an outdated image: The article features an image of a sunset, but the article is about Prudential's Q2 earnings, which should have an image related to the company or the financial sector.
Neutral
Article's Tone (optimistic, pessimistic, realistic, unrealistic, sarcastic): Realistic
Article's Purpose (to inform, to persuade, to entertain, to educate): To inform
Article's Audience (general public, industry professionals, experts, beginners): General public
Article's Style (formal, informal, academic, casual, conversational): Informal
1. Prudential Financial is expected to report Q2 earnings on Aug 1, after market close.
2. The company delivered a negative earnings surprise in the last reported quarter.
3. Factors to consider include higher spread income, net investment spread results, and higher underwriting results in the U.S. business; higher net investment spread results and higher earnings from joint ventures in the international business; higher net investment spread results in the Group Insurance business; equity market appreciation and tightening credit spreads in PGIM; and higher reinvestment rates and growth in indexed variable annuities in the Individual Retirement Strategies business.
4. The company estimates earnings per share to be $3.36 for the second quarter of 2024.
5. The Zacks Consensus Estimate for earnings per share is pegged at $3.43, indicating an increase of 16.6% from the year-ago period's reported figure.
6. The Zacks Consensus Estimate for revenues is pegged at $13.78 billion, indicating a decrease of 9% from the year-ago quarter's reported figure.
7. Our model predicts an earnings beat for Prudential Financial this time around, based on the positive Earnings ESP and the Zacks Rank #3.
8. Other insurance stocks to consider are Kemper Corporation and Oscar Health, which also have the right combination of elements to deliver an earnings beat.