JHVEPhoto/iStock Editorial via Getty Images Internationally-operating insurance and other financial products company Prudential Financial (NYSE:PRU) is scheduled to announce Q4 earnings results on Tuesday, February 7th, after market close. Will PRU beat consensus and post solid quarterly results? The consensus EPS estimate is $2.51 (-21.1% Y/Y) and the consensus revenue estimate is $13.57B (-1.29% Y/Y). Over the last 2 years, PRU has beaten EPS estimates 88% of the time and revenue estimates 38% of the time. Over the last 3 months, EPS estimates have seen 3 upward revisions and 10 downward revisions. Revenue estimates have seen 0 upward revisions and 6 downward revisions. Jefferies had put Prudential in its inaugural global stock picks list in January, having said it believes emerging markets, particularly those in Asia, will see “one of the best operating environments in years” due to recession in more developed markets, a weaker U.S. dollar and the re-opening of China. PRU has “outsized” exposure to those markets, according to the investment bank. Meanwhile, peer Principal Financial Group posted a beat in Q4 earnings, but decreased from a year ago, as pre-tax operating earnings deteriorated for most of its segments. Aflac, on the other hand, posted a beat in Q4 earnings, while revenue, hurt by a weaker yen/dollar exchange rate and foreign exchange-related investment losses, fell short of expectations. Seeking Alpha author Pearl Gray Equity and Research expects a solid Q4 for PRU, but a backdrop is possible, raising the possibility of a softer outlook. Despite this, Prudential’s stock is relatively overvalued, and its dividend yield is poorly covered, according to the author. PRU can raise its 2023 dividend, looking at the company’s dividend history. Here is a look at the dividend payout history: Seeking Alpha’s authors give the stock a Hold rating on an average, with the bulls saying PRU will get through the current period of lower earnings; the dividend is solid and the balance sheet is strong. The sell-side analysts and Seeking Alpha’s Quant Rating system also give the stocks a Hold rating.
