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What's in Store for Principal Financial (PFG) in Q4 Earnings?
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Principal Financial Group, Inc. (PFG - Free Report) is slated to report fourth-quarter 2023 earnings on Feb 12, after market close. PFG delivered an earnings surprise in two of the last four reported quarters and missed twice, the average being 1.09%.
Factors at Play
Principal Financial’s fourth-quarter results are likely to reflect lower sales and improved operating expenses, offset by higher average monthly account values and investment income.
The Zacks Consensus Estimate for fourth-quarter 2023 revenues is pegged at $3.5 billion, indicating an improvement of 12.3% from the year-ago quarter’s reported figure.
Revenues in the Retirement and Income Solutions segment are likely to have decreased due to slightly lower sales of single premium group annuities with life contingencies. The decrease is likely to have been partially offset by higher average monthly account values stemming from improvements in financial markets.
Investment income is expected to have benefited from higher fixed maturity, cash and commercial mortgage yields and sales of certain value-added real estate in U.S. operations. However, lower inflation-based investment returns on Latin America’s average invested assets might bring down the figure in the fourth quarter. The Zacks Consensus Estimate for net investment income is pegged at $1 billion, suggesting an increase of 2.6% from the year-ago reported figure. We expect investment income to increase 1.1% to $992.5 million.
Assets under management are likely to have benefited from favorable equity and fixed-income markets, positive net cash flow as well as favorable impacts from foreign currency.
Expenses are likely to have decreased due to lower inflation-based interest crediting rates to customers in Principal International operations in Latin America. The decrease is likely to have been partially offset by higher benefits, claims and settlement expenses for the Retirement and Income Solutions segment, primarily due to higher reserves. We expect total expenses to be $3 billion.
Operating expenses are likely to have increased due to a rise in amounts credited to employee accounts in a nonqualified defined contribution pension plan and an increase in compensation costs. We expect operating expenses to be $1.2 billion.
The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.70 per share.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Principal Financial this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP: Principal Financial has an Earnings ESP of +1.45%. This is because the Most Accurate Estimate is pegged at $1.72, higher than the Zacks Consensus Estimate of $1.70. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Principal Financial Group, Inc. Price and EPS Surprise
CUBE’s earnings beat estimates in two of the last four quarters, matched in one and missed in the other one.
Federal Realty Investment Trust (FRT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.64, indicating a year-over-year increase of 3.8%.
FRT’s earnings beat estimates in each of the four trailing quarters.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.94, indicating a year-over-year decrease of 9.3%.
ACGL’s earnings beat estimates in each of the four trailing quarters.
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What's in Store for Principal Financial (PFG) in Q4 Earnings?
Principal Financial Group, Inc. (PFG - Free Report) is slated to report fourth-quarter 2023 earnings on Feb 12, after market close. PFG delivered an earnings surprise in two of the last four reported quarters and missed twice, the average being 1.09%.
Factors at Play
Principal Financial’s fourth-quarter results are likely to reflect lower sales and improved operating expenses, offset by higher average monthly account values and investment income.
The Zacks Consensus Estimate for fourth-quarter 2023 revenues is pegged at $3.5 billion, indicating an improvement of 12.3% from the year-ago quarter’s reported figure.
Revenues in the Retirement and Income Solutions segment are likely to have decreased due to slightly lower sales of single premium group annuities with life contingencies. The decrease is likely to have been partially offset by higher average monthly account values stemming from improvements in financial markets.
Investment income is expected to have benefited from higher fixed maturity, cash and commercial mortgage yields and sales of certain value-added real estate in U.S. operations. However, lower inflation-based investment returns on Latin America’s average invested assets might bring down the figure in the fourth quarter. The Zacks Consensus Estimate for net investment income is pegged at $1 billion, suggesting an increase of 2.6% from the year-ago reported figure. We expect investment income to increase 1.1% to $992.5 million.
Assets under management are likely to have benefited from favorable equity and fixed-income markets, positive net cash flow as well as favorable impacts from foreign currency.
Expenses are likely to have decreased due to lower inflation-based interest crediting rates to customers in Principal International operations in Latin America. The decrease is likely to have been partially offset by higher benefits, claims and settlement expenses for the Retirement and Income Solutions segment, primarily due to higher reserves. We expect total expenses to be $3 billion.
Operating expenses are likely to have increased due to a rise in amounts credited to employee accounts in a nonqualified defined contribution pension plan and an increase in compensation costs. We expect operating expenses to be $1.2 billion.
The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.70 per share.
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Principal Financial this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP: Principal Financial has an Earnings ESP of +1.45%. This is because the Most Accurate Estimate is pegged at $1.72, higher than the Zacks Consensus Estimate of $1.70. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Principal Financial Group, Inc. Price and EPS Surprise
Principal Financial Group, Inc. price-eps-surprise | Principal Financial Group, Inc. Quote
Zacks Rank: PFG currently carries a Zacks Rank #3.
Other Stocks to Consider
Some other stocks from the finance sector with the right combination of elements to surpass estimates this time around are as follows:
CubeSmart (CUBE - Free Report) has an Earnings ESP of +0.79% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 68 cents, indicating a year-over-year increase of 1.49%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CUBE’s earnings beat estimates in two of the last four quarters, matched in one and missed in the other one.
Federal Realty Investment Trust (FRT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.64, indicating a year-over-year increase of 3.8%.
FRT’s earnings beat estimates in each of the four trailing quarters.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.94, indicating a year-over-year decrease of 9.3%.
ACGL’s earnings beat estimates in each of the four trailing quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.