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Principal Financial to Report Q4 Earnings: Is a Beat in Store?

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Principal Financial Group, Inc. (PFG - Free Report) is slated to report fourth-quarter 2024 earnings on Feb. 6, after market close. PFG delivered a negative earnings surprise in the last reported quarter.

See the Zacks Earnings Calendar to stay ahead of market-making news.

Factors at Play

Principal Financial’s fourth-quarter results are likely to reflect a rise in fee revenues, higher yields, favorable market performance and higher sales of single premium group annuities. 

Operating revenues are likely to have declined owing to lower premiums & other considerations as well as lower fees & other revenues in Retirement and Income Solutions and Principal Global Investors. The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $4.03 billion, indicating a decline of nearly 5% from the year-ago reported number.

Ongoing business growth in Latin America and improved performance in Asia are likely to have led to better performance at Principal International.

Investment income is expected to have benefited from higher yields and average invested assets in fixed maturities and cash in U.S. operations. We expect net investment income to be $1.2 billion in fourth-quarter 2024. 

Assets under management are likely to have benefited from favorable market performance in equity, fixed income and real estate. 

Expenses are likely to have increased due to higher benefits, claims and settlement expenses. We expect operating expenses to be $1.2 billion.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.95 per share, suggesting a decrease of 5% from the prior-year quarter’s reported figure.

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Principal Financial this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat. 

Earnings ESP: Principal Financial has an Earnings ESP of +0.03%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: PFG currently carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other finance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

Unum Group (UNM - Free Report) has an Earnings ESP of +0.23% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at $2.13, indicating a year-over-year increase of 19%. You can see the complete list of today’s Zacks #1 Rank stocks here.

UNM’s earnings beat estimates in three of the last four reported quarters and missed in one.

Allstate Corporation (ALL - Free Report) has an Earnings ESP of +3.93% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at $6.51, indicating a year-over-year increase of 11.9%. 

ALL’s earnings beat estimates in each of the last four reported quarters.

Intercontinental Exchange Inc. (ICE - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at $1.49, indicating a year-over-year increase of 5.3%. 

ICE’s earnings beat estimates in two of the last four reported quarters and matched in the other two.

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