Back to top

Image: Bigstock

Principal Financial (PFG) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

Read MoreHide Full Article

Principal Financial (PFG - Free Report) reported $3.67 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 5.6%. EPS of $1.76 for the same period compares to $1.72 a year ago.

The reported revenue represents a surprise of -6.38% over the Zacks Consensus Estimate of $3.92 billion. With the consensus EPS estimate being $2.01, the EPS surprise was -12.44%.

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 Asset Management Segment - Principal Global Investors - AUM, end of period: $541 billion compared to the $175.27 billion average estimate based on four analysts.
  • Revenue- Net investment income: $1.17 billion versus $1.11 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +18% change.
  • Revenue- Fees and other revenues: $1.09 billion versus the five-analyst average estimate of $1.07 billion. The reported number represents a year-over-year change of +4.3%.
  • Revenue- Premiums and other considerations: $1.41 billion compared to the $1.68 billion average estimate based on five analysts. The reported number represents a change of -3.1% year over year.
  • Revenue- Benefits and Protection Segment- Net Investment Income: $153.80 million versus $150.19 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.1% change.
  • Revenue- Corporate Segment- Fees and other revenues: -$26.10 million compared to the -$24.79 million average estimate based on four analysts. The reported number represents a change of -19.7% year over year.
  • Revenue- Retirement and Income Solutions Segment- Premiums and other considerations: $471.70 million versus the four-analyst average estimate of $742.48 million. The reported number represents a year-over-year change of -15.9%.
  • Revenue- Retirement and Income Solutions Segment- Net investment income: $761.50 million versus the four-analyst average estimate of $754.40 million. The reported number represents a year-over-year change of +13.3%.
  • Revenue- Retirement and Income Solutions Segment- Fees and other revenues: $453.20 million compared to the $457.64 million average estimate based on four analysts. The reported number represents a change of +8.5% year over year.
  • Revenue- Benefits and Protection Segment- Specialty Benefits- Fees and other revenues: $8.20 million versus $8.64 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -4.7% change.
  • Revenue- Benefits and Protection Segment- Specialty Benefits- Premiums and other considerations: $810.60 million versus $823.90 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6.3% change.
  • Revenue- Benefits and Protection Segment- Specialty Benefits- Net Investment Income: $50.10 million versus the four-analyst average estimate of $45.63 million. The reported number represents a year-over-year change of +10.6%.
View all Key Company Metrics for Principal Financial here>>>

Shares of Principal Financial have returned +5.5% over the past month versus the Zacks S&P 500 composite's +1.5% 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.

See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Principal Financial Group, Inc. (PFG) - free report >>

Published in