Prudential Financial handles Q2 with aplomb the life insurer with its iconic Rock brand image which symbolizes stability and strength smashed analyst estimates of $1.3 a share, with earnings per share coming in at $1.7 or $798 million of profit. Allan Edwards co-CEO of The Markets Are Open stated "what is most impressive about these results was that that Prudential built up reserves in the current quarter and without this, results would have been even stronger." Prudential saw revenues increase to 8.7 billion dollars up from 6.3 billion in the period a year ago.
Edwards commented "that is unheard of growth for a life insurance company this was truly a KOBATA." KOBATA is Wall Street lingo for "knocked it out of the ballpark above top anticipations." The results were impacted by a 45 cent gain in realized investment gains but this was offset by other costs.
Asked what he felt Prudential should be worth Edwards said "tangible book value is now at $59.94 per share and the stock currently trades under this amount, so Wall Street traders get a company making 2 billion a year at a price cheaper than their equity, sounds like a great investment to me, yet Wall Street traders would rather buy Priceline." snickered Edwards. Priceline.com Incorporated an online travel company saw its stock rise 22% today and trades at half the equity of Prudential despite posting revenue which was less than Prudential's profit.
Prudential is currently trading up 3.5% in after hours trading which is from the time the markets close until 8:00PM where typically machines accept trades usually at a lower volume. Edwards finished "the stock is still trading at unrealistic levels this sort of earnings report would have boosted PRU up if it were trading at $100 let alone a measly $56."
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