M&G (LON:MNG) Issues Quarterly Earnings Results

M&G (LON:MNG) released its quarterly earnings data on Thursday. The company reported GBX 12.60 EPS for the quarter, Digital Look Earnings reports. M&G had a negative net margin of 0.52% and a negative return on equity of 1.69%.

Here are the key takeaways from M&G’s conference call:

• M&G reported strong net inflows and scale gains, citing GBP 7.8bn of net flows from open business and AUM rising to around GBP 376bn, driven by private markets and public equity mandates.
• Management is shifting life new business to a capital?light, fee?based model (moving with?profits business to fees) and targets at least GBP 50bn of assets in these fee?based products by 2030, which should boost recurring, transparent fee income.
• The balance sheet and capital generation remain strong — operating capital generation excluding new business strain was GBP 928m, Solvency II ratio closed at 242% with a GBP 5bn surplus, supporting a proposed progressive dividend of 20.5p.
• Some profitability headwinds and one?offs: shareholder annuities profit fell ~8% (lower returns), new business strain from BPA activity was elevated (c. GBP 163m total), a GBP 26m Polish provision, and corporate center investment income weakened — risks that could pressure near?term earnings.

M&G Stock Performance

MNG stock opened at GBX 295.50 on Friday. The stock has a market capitalization of £7.01 billion, a price-to-earnings ratio of -118.20, a PEG ratio of -2.76 and a beta of 0.90. M&G has a 1 year low of GBX 171.55 and a 1 year high of GBX 324.50. The stock’s fifty day moving average is GBX 306.36 and its two-hundred day moving average is GBX 279.90.

Analyst Ratings Changes

MNG has been the topic of a number of research reports. UBS Group cut shares of M&G to a “neutral” rating and increased their target price for the stock from GBX 275 to GBX 290 in a report on Wednesday, December 17th. Berenberg Bank reaffirmed a “buy” rating and set a GBX 342 price objective on shares of M&G in a research report on Monday, February 9th. JPMorgan Chase & Co. increased their price objective on shares of M&G from GBX 305 to GBX 320 and gave the stock a “neutral” rating in a research note on Wednesday, February 4th. Finally, The Goldman Sachs Group raised their target price on shares of M&G from GBX 300 to GBX 328 and gave the stock a “buy” rating in a report on Wednesday, January 21st. Two analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of GBX 300.83.

About M&G

M&G plc is a leading savings and investments business, managing investments for both individuals and for large institutional investors, such as pension funds, around the world.

We have a single corporate identity, M&G plc, and two customer-facing brands: Prudential and M&G Investments. Prudential offers savings and insurance for customers in the UK and Europe and for asset management in South Africa. M&G Investments manages assets for clients globally.

With roots stretching back more than 170 years, we have a long history of finding innovative solutions for our customers’ changing needs.