Prudential Had a Decent Q1, but Is Seeing Some Headwinds

Prudential reported a good start to 2022. Adjusted earnings per share of $3.17 topped the FactSet consensus estimate of $2.70. Higher variable investment income largely drove the beat, but we expect this to significantly moderate in coming quarters, particularly with the recent decline in public and private company valuations. Overall, there was little in no-moat Prudential’s earnings release that would alter our long-term view of the stock and we will maintain our fair value estimate of $97.