What Happened?

Shares of financial services giant Prudential Financial (NYSE: PRU) jumped 2.7% in the morning session after the company reported third-quarter results that surpassed Wall Street's expectations for both profit and revenue. The financial services giant posted adjusted earnings of $4.26 per share, easily clearing analysts' consensus estimates of $3.72. This also represented an increase from the $3.48 reported in the same quarter last year. Revenue for the quarter came in at $16.24 billion, which was 14.4% ahead of forecasts, though it marked a 16.7% decline compared to the prior-year period. The results were supported by a significant beat on Net Premiums Earned, which came in at $8.69 billion against an expected $6.73 billion. However, it wasn't all positive, as the company's book value per share of $90.69 missed analyst estimates.

After the initial pop the shares cooled down to $103.94, up 2.7% from previous close.

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What Is The Market Telling Us

Prudential’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Prudential is down 12.1% since the beginning of the year, and at $103.94 per share, it is trading 19.7% below its 52-week high of $129.52 from November 2024. Investors who bought $1,000 worth of Prudential’s shares 5 years ago would now be looking at an investment worth $1,624.

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