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Principal Financial (PFG) Reports Q2 Earnings: What Key Metrics Have to Say

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Principal Financial (PFG - Free Report) reported $3.5 billion in revenue for the quarter ended June 2023, representing a year-over-year increase of 11.4%. EPS of $1.53 for the same period compares to $1.65 a year ago.

The reported revenue represents a surprise of +0.32% over the Zacks Consensus Estimate of $3.49 billion. With the consensus EPS estimate being $1.66, the EPS surprise was -7.83%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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 Asset Management Segment - Principal Global Investors - AUM, end of period: $485.8 billion versus $488.2 billion estimated by four analysts on average.
  • Principal Asset Management Segment - Principal International - AUM, end of period: $141.8 billion versus $167.3 billion estimated by four analysts on average.
  • Retirement and Income Solutions Segment - Account Values, end of period: $426.70 versus the four-analyst average estimate of $655.55.
  • Revenue- Net investment income: $988.10 million compared to the $1.03 billion average estimate based on five analysts. The reported number represents a change of +21% year over year.
  • Revenue- Premiums and other considerations: $1.49 billion versus $1.46 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +9.3% change.
  • Revenue- Fees and other revenues: $1.02 billion versus $989.51 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +7.4% change.
  • Revenue- Principal Asset Management Segment- Principal International- Total: $302.30 million versus $350.29 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -31.2% change.
  • Revenue- Corporate Segment- Total: $14.60 million compared to the $22.87 million average estimate based on four analysts.
  • Revenue- Retirement and Income Solutions Segment- Net investment income: $636.70 million compared to the $630.42 million average estimate based on four analysts.
  • Revenue- Benefits and Protection Segment- Life Insurance- Net Investment Income: $104.20 million versus the four-analyst average estimate of $100.76 million.
  • Revenue- Principal Asset Management Segment- Principal International- Net investment income: $175.40 million compared to the $228.91 million average estimate based on four analysts.
  • Revenue- Corporate Segment- Net Investment Income: $42.60 million versus $55.68 million estimated by four analysts on average.
View all Key Company Metrics for Principal Financial here>>>

Shares of Principal Financial have returned +13.5% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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