RU) reported an EPS of $2.96, missing the estimated $3.36.Prudential Financial, Inc. (NYSERU) is a prominent player in the insurance industry, specifically within the Zacks Insurance - Multi-line sector. The company offers a range of financial products and services, including life insurance, annuities, retirement-related services, mutual funds, and investment management. Prudential competes with other major insurance firms, striving to maintain its position in a competitive market.
On February 4, 2025, Prudential reported earnings per share (EPS) of $2.96, which fell short of the estimated $3.36. This represents a negative surprise of 9.76%, as highlighted by Zacks. Despite this shortfall, the EPS showed an improvement from the $2.58 reported a year ago. In the previous quarter, Prudential had slightly exceeded expectations with an EPS of $3.48, indicating a minor positive surprise of 0.29%.
Prudential's revenue for the quarter was approximately $14.25 billion, missing the anticipated $14.71 billion. This follows a pattern, as the company reported $13.01 billion in revenue for the quarter ending December 2024, which also missed the Zacks Consensus Estimate by 8.08%. Despite these misses, Prudential has managed to exceed consensus revenue estimates three times in the last four quarters.
The company's financial metrics provide further insight into its market valuation. With a price-to-earnings (P/E) ratio of about 10.26, Prudential's earnings are valued moderately by the market. Its price-to-sales ratio of approximately 0.56 suggests a relatively low market valuation compared to its revenue. The enterprise value to sales ratio is around 0.57, reflecting the company's total valuation in relation to its sales.
Prudential's financial health is supported by a strong current ratio of about 3.06, indicating its ability to cover short-term liabilities with current assets. The debt-to-equity ratio of approximately 0.71 shows a moderate level of debt compared to equity. Additionally, the enterprise value to operating cash flow ratio of about 5.94 highlights how the market values its cash flow generation, while an earnings yield of 9.74% provides insight into the return on investment for shareholders.
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