Solid Quarter for Prudential, but Momentum Likely to Slow

Prudential Financial reported solid second-quarter financial results with adjusted earnings per share of $3.79, which compares to the FactSet consensus of $3.11 and management's baseline outlook of $2.89. Looking ahead, Prudential expects a baseline third-quarter 2021 EPS of $2.59, which compares with the FactSet consensus of $2.93 and has headwinds of higher nonrecurring expenses and higher coronavirus claims relative to the second quarter. We will maintain our no-moat rating and fair value estimate of $89.