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Principal Financial (PFG) Reports Q4 Earnings: What Key Metrics Have to Say

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Principal Financial (PFG - Free Report) reported $4.24 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 17.3%. EPS of $1.83 for the same period compares to $1.70 a year ago.

The reported revenue represents a surprise of +20.14% over the Zacks Consensus Estimate of $3.53 billion. With the consensus EPS estimate being $1.70, the EPS surprise was +7.65%.

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 International - AUM, end of period: $146.7 billion compared to the $164.4 billion average estimate based on four analysts.
  • Retirement and Income Solutions Segment - Account Values, end of period: $508.70 versus $635.99 estimated by four analysts on average.
  • Principal Asset Management Segment - Principal Global Investors - AUM, end of period: $499.5 billion versus $471.59 billion estimated by four analysts on average.
  • Revenue- Net investment income: $1.13 billion compared to the $1.01 billion average estimate based on six analysts. The reported number represents a change of +14.2% year over year.
  • Revenue- Premiums and other considerations: $2.07 billion compared to the $1.52 billion average estimate based on five analysts. The reported number represents a change of +29.5% year over year.
  • Revenue- Fees and other revenues: $1.04 billion compared to the $989.23 million average estimate based on five analysts. The reported number represents a change of +3.8% year over year.
  • Revenue- Retirement and Income Solutions Segment- Net investment income: $706.40 million compared to the $639.22 million average estimate based on four analysts. The reported number represents a change of +19.5% year over year.
  • Revenue- Retirement and Income Solutions Segment- Fees and other revenues: $430.90 million versus the four-analyst average estimate of $411.50 million. The reported number represents a year-over-year change of +2.8%.
  • Revenue- Benefits and Protection Segment- Specialty Benefits- Fees and other revenues: $8.40 million compared to the $8.98 million average estimate based on four analysts.
  • Revenue- Benefits and Protection Segment- Specialty Benefits- Premiums and other considerations: $783 million versus $763.66 million estimated by four analysts on average.
  • Revenue- Benefits and Protection Segment- Specialty Benefits- Net Investment Income: $47 million compared to the $44.69 million average estimate based on four analysts.
  • Revenue- Benefits and Protection Segment- Specialty Benefits- Total: $838.40 million versus the four-analyst average estimate of $817.33 million.
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 +5.8% 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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