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Principal Financial (PFG) Q1 Earnings Beat, Revenues Up Y/Y
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Principal Financial Group, Inc.’s (PFG - Free Report) first-quarter 2017 operating net income of $1.27 per share beat the Zacks Consensus Estimate by a dime. The bottom line also improved 31% year over year.
The company’s investment performance remained strong. Moreover, the company expanded its solution set alongside strengthening relationships with customers and distributors in the quarter. The company also displayed a balanced approach to capital management.
Including net realized capital losses of 8 cents, net income available to common stockholders was $1.19 per share, down 4.8% year over year.
Behind the Headlines
Operating revenues inched up 1% year over year to $3.1 billion.
Total expenses rose 1.5% year over year to $2.6 billion. This was primarily due to the increase in operating expenses.
Principal Financial’s Asset Under Management (AUM) as of Mar 31, 2076 was a record $620 billion. The metric increased 4.8% from Dec 31, 2016.
As of Mar 31, 2017, book value per share (excluding AOCI other than foreign currency translation adjustment) was $34.85, up 2.2% year over year.
Principal Financial Group Inc Price, Consensus and EPS Surprise
Retirement and Income Solution: Revenues were up approximately 1.3% year over year to about $1.5 billion.
Operating earnings increased 35% year over year to $244.2 million.
Principal Global Investors: Revenues of $345.9 million climbed nearly 12% from the prior-year quarter.
Operating earnings rose 25% year over year to $100 million owing to higher operating revenues and improved margins.
Principal International: Revenues increased 12% year over year to $321.3 million in the quarter.
Operating earnings surged 48% year over year to $100.9 million.
US Insurance Solution: Revenues increased 7.4% year over year to $956.4 million.
Operating earnings of $86.2 million were up 7.1% year over year.
Corporate: Revenues of $1.5 million compared favorably with ($13.1) million in the year-ago quarter.
Operating loss of $58.5 million was narrower than a loss of $53.3 million in the year-earlier quarter.
Dividend and Share Repurchase Update
The company paid $130 million in dividends and deployed $118 million to buy back 1.9 million shares in the first quarter. Total capital utilized was $248 million.
The board of directors Principal Financial announced a dividend of 46 cents per share for second quarter. The dividend will be paid on Jun 30.
Principal Financial targets 2017 capital deployment of $800 million to $1.1 billion.
Among the other players from the finance sector that have reported their first-quarter earnings so far, Chubb Limited (CB - Free Report) beat the Zacks Consensus Estimate but RLI Corp. (RLI - Free Report) and The Progressive Corporation (PGR - Free Report) missed expectations.
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Principal Financial (PFG) Q1 Earnings Beat, Revenues Up Y/Y
Principal Financial Group, Inc.’s (PFG - Free Report) first-quarter 2017 operating net income of $1.27 per share beat the Zacks Consensus Estimate by a dime. The bottom line also improved 31% year over year.
The company’s investment performance remained strong. Moreover, the company expanded its solution set alongside strengthening relationships with customers and distributors in the quarter. The company also displayed a balanced approach to capital management.
Including net realized capital losses of 8 cents, net income available to common stockholders was $1.19 per share, down 4.8% year over year.
Behind the Headlines
Operating revenues inched up 1% year over year to $3.1 billion.
Total expenses rose 1.5% year over year to $2.6 billion. This was primarily due to the increase in operating expenses.
Principal Financial’s Asset Under Management (AUM) as of Mar 31, 2076 was a record $620 billion. The metric increased 4.8% from Dec 31, 2016.
As of Mar 31, 2017, book value per share (excluding AOCI other than foreign currency translation adjustment) was $34.85, up 2.2% year over year.
Principal Financial Group Inc Price, Consensus and EPS Surprise
Principal Financial Group Inc Price, Consensus and EPS Surprise | Principal Financial Group Inc Quote
Segment Update
Retirement and Income Solution: Revenues were up approximately 1.3% year over year to about $1.5 billion.
Operating earnings increased 35% year over year to $244.2 million.
Principal Global Investors: Revenues of $345.9 million climbed nearly 12% from the prior-year quarter.
Operating earnings rose 25% year over year to $100 million owing to higher operating revenues and improved margins.
Principal International: Revenues increased 12% year over year to $321.3 million in the quarter.
Operating earnings surged 48% year over year to $100.9 million.
US Insurance Solution: Revenues increased 7.4% year over year to $956.4 million.
Operating earnings of $86.2 million were up 7.1% year over year.
Corporate: Revenues of $1.5 million compared favorably with ($13.1) million in the year-ago quarter.
Operating loss of $58.5 million was narrower than a loss of $53.3 million in the year-earlier quarter.
Dividend and Share Repurchase Update
The company paid $130 million in dividends and deployed $118 million to buy back 1.9 million shares in the first quarter. Total capital utilized was $248 million.
The board of directors Principal Financial announced a dividend of 46 cents per share for second quarter. The dividend will be paid on Jun 30.
Principal Financial targets 2017 capital deployment of $800 million to $1.1 billion.
Zacks Rank
Principal Financial presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Stocks
Among the other players from the finance sector that have reported their first-quarter earnings so far, Chubb Limited (CB - Free Report) beat the Zacks Consensus Estimate but RLI Corp. (RLI - Free Report) and The Progressive Corporation (PGR - Free Report) missed expectations.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trade>>