Prudential Financial Missed 1Q Adjusted Profit Expectations
May 05 2020 - 5:16PM
Dow Jones News
By Micah Maidenberg
Prudential Financial Inc. said Tuesday it lost $271 million, or
70 cents a share, for the first quarter, as the insurance and
financial services company reported lower investment spreads amid
market turmoil tied to the new coronavirus.
The company reported an adjusted profit of $2.32 a share, down
from $3 a share in the first quarter last year. Analysts expected
$2.78 a share on that metric for the latest period, according to
FactSet.
Weaker investment spreads, or the difference between the amount
the company must pay out and the rate of return it earns on certain
investments, hurt results in some units, Prudential said in a
statement.
The company reported lower investment spreads across its U.S.
business unit as well as lower net fee income. International
businesses also saw lower net investment spreads.
And PGIM, its global investment management business, reported
adjusted operating income of $164 million for the first quarter,
down from $214 million in the first quarter last year. Lower
strategic investment earnings weighed on PGIM, the company
said.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
May 05, 2020 17:01 ET (21:01 GMT)
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