Principal Financial Group, Inc. (PFG), headquartered in Des Moines, Iowa, is a global leader in financial services, offering various solutions, including retirement, insurance, and asset management. With a market cap of $18.3 billion, it plays a vital role in helping individuals and businesses achieve financial security and success. The company is set to release its Q4 earnings after the market closes on Thursday, Feb. 6.
Ahead of the event, analysts expect the financial services company to report a profit of $1.98 per share, up 8.2% from $1.83 in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while surpassing on another occasion. In Q3, the company missed the consensus EPS estimates by 12.4% due to lower-than-expected investment management revenues and higher expenses.
For fiscal 2024, analysts expect Principal Financial to report an adjusted EPS of $7.01, up 7% from $6.55 in fiscal 2023.
Principal Financial's shares have gained 1.7% over the past 52 weeks, underperforming the S&P 500 Index's ($SPX) 24.4% gain and the iShares U.S. Financials ETF’s (IYF) 34.2% return during the same period.
Principal Financial shares dropped 6.6% following its Q3 earnings release on Oct. 24 as the company reported weaker-than-expected adjusted EPS of $1.76 and adjusted revenue of $3.7 billion. Additionally, total expenses increased 10.4% year-over-year, pressuring margins despite growth in AUM and segment revenues. Weak performances in key areas like the Benefits and Protection and Life Insurance segments, with significant pre-tax earnings declines, further dampened investor sentiment.
Analysts’ consensus opinion on Principal Financial's stock is cautious, with a “Hold” rating overall. Out of 15 analysts covering the stock, three advise a “Strong Buy” rating, eight give a “Hold” rating, and four recommend a “Strong Sell.” As of writing, Principal Financial is trading below the average analyst price target of $86.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from BarchartThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
