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Principal Financial (PFG) Reports Q1 Earnings: What Key Metrics Have to Say
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For the quarter ended March 2023, Principal Financial (PFG - Free Report) reported revenue of $3.44 billion, up 5.1% over the same period last year. EPS came in at $1.48, compared to $1.63 in the year-ago quarter.
The reported revenue represents a surprise of +6.95% over the Zacks Consensus Estimate of $3.22 billion. With the consensus EPS estimate being $1.54, the EPS surprise was -3.90%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Principal Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Principal Global Investors Segment - AUM, end of period: $478.7 billion versus $520.8 billion estimated by three analysts on average.
Revenue- Net investment income: $986.70 million compared to the $979.08 million average estimate based on six analysts. The reported number represents a change of -11.8% year over year.
Revenue- Premiums and other considerations: $1.45 billion versus $1.28 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +63.2% change.
Revenue- Fees and other revenues: $995.30 million versus the five-analyst average estimate of $1.03 billion. The reported number represents a year-over-year change of -18.1%.
Revenue- Retirement and Income Solutions Segment- Total: $1.62 billion versus the three-analyst average estimate of $1.43 billion.
Revenue- Principal Global Investors Segment- Total: $392.70 million versus $431.87 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -78.8% change.
Revenue- Principal International Segment- Total: $305.10 million compared to the $366.79 million average estimate based on three analysts. The reported number represents a change of -3.1% year over year.
Revenue- Principal International Segment- Net investment income: $184.10 million versus $238.53 million estimated by three analysts on average.
Pre-Tax Operating Earnings- Principal Global Investors Segment: $109.10 million versus the four-analyst average estimate of $138.68 million.
Pre-Tax Operating Earnings- Retirement & Investor Services Segment: $249.80 million compared to the $230.64 million average estimate based on four analysts.
Pre-Tax Operating Earnings- Principal International Segment: $78.70 million versus $66.84 million estimated by four analysts on average.
Shares of Principal Financial have returned +0.7% over the past month versus the Zacks S&P 500 composite's +4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Principal Financial (PFG) Reports Q1 Earnings: What Key Metrics Have to Say
For the quarter ended March 2023, Principal Financial (PFG - Free Report) reported revenue of $3.44 billion, up 5.1% over the same period last year. EPS came in at $1.48, compared to $1.63 in the year-ago quarter.
The reported revenue represents a surprise of +6.95% over the Zacks Consensus Estimate of $3.22 billion. With the consensus EPS estimate being $1.54, the EPS surprise was -3.90%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Principal Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Principal Global Investors Segment - AUM, end of period: $478.7 billion versus $520.8 billion estimated by three analysts on average.
- Revenue- Net investment income: $986.70 million compared to the $979.08 million average estimate based on six analysts. The reported number represents a change of -11.8% year over year.
- Revenue- Premiums and other considerations: $1.45 billion versus $1.28 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +63.2% change.
- Revenue- Fees and other revenues: $995.30 million versus the five-analyst average estimate of $1.03 billion. The reported number represents a year-over-year change of -18.1%.
- Revenue- Retirement and Income Solutions Segment- Total: $1.62 billion versus the three-analyst average estimate of $1.43 billion.
- Revenue- Principal Global Investors Segment- Total: $392.70 million versus $431.87 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -78.8% change.
- Revenue- Principal International Segment- Total: $305.10 million compared to the $366.79 million average estimate based on three analysts. The reported number represents a change of -3.1% year over year.
- Revenue- Principal International Segment- Net investment income: $184.10 million versus $238.53 million estimated by three analysts on average.
- Pre-Tax Operating Earnings- Principal Global Investors Segment: $109.10 million versus the four-analyst average estimate of $138.68 million.
- Pre-Tax Operating Earnings- Retirement & Investor Services Segment: $249.80 million compared to the $230.64 million average estimate based on four analysts.
- Pre-Tax Operating Earnings- Principal International Segment: $78.70 million versus $66.84 million estimated by four analysts on average.
View all Key Company Metrics for Principal Financial here>>>Shares of Principal Financial have returned +0.7% over the past month versus the Zacks S&P 500 composite's +4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.