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Principal Financial (PFG) Q3 Earnings: Is a Beat in Store?
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Principal Financial Group, Inc. (PFG - Free Report) is set to report third-quarter 2017 results on Oct 26, after the market closes. The company delivered a positive earnings surprise in the last two quarters. Let’s see what it has in store for this soon-to-be reported quarter.
Given a gradually improving interest rate environment, the investment income, indicating a major component to the top line, has likely improved.
The company’s fee-based revenue sources coupled with improved investment income likely have driven increased revenues. The Zacks Consensus Estimate for revenues is pegged at $3.1 billion, reflecting a 10.8% year-over-year increase.
Assets under management are expected to have improved owing to better performance in asset management and asset accumulation segments.
The company’s bottom line likely has benefited from share buybacks.
Given its expanded suite of investment options, the company expects solid cash flows in core US retirement plan market in the quarter to be reported.
However, escalating expenses are expected to have weighed on desired margin expansion.
The Zacks Consensus Estimate for the third quarter is pegged at $1.29 per share, reflecting a 12.4% year-over-year rise.
What Our Quantitative Model Predicts
Our proven model shows that Principal Financial is likely to beat estimates this quarter. This is because a stock has the right combination of two main ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for an earnings beat.
Zacks ESP: Principal Financial has an Earnings ESP of +0.33% as the Most Accurate estimate of $1.30 is pegged higher than the Zacks Consensus Estimate of $1.29. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Principal Financial Group Inc Price and EPS Surprise
We caution against all Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other stocks worth considering from the finance sector with the right combination of elements to come up with an earnings beat this quarter are as follows:
Prudential Financial (PRU - Free Report) is set to report third-quarter earnings on Nov 1 with an Earnings ESP of +0.07% and carries a Zacks Rank of 2.
Lincoln National Corporation (LNC - Free Report) has an Earnings ESP of +0.05%. This #2 Ranked company is slated to report third-quarter earnings on Nov 1.
American Equity Investment Life Holding Company (AEL - Free Report) has an Earnings ESP of +0.40%. This Zacks #2 Ranked company is set to report third-quarter earnings on Nov 6.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Principal Financial (PFG) Q3 Earnings: Is a Beat in Store?
Principal Financial Group, Inc. (PFG - Free Report) is set to report third-quarter 2017 results on Oct 26, after the market closes. The company delivered a positive earnings surprise in the last two quarters. Let’s see what it has in store for this soon-to-be reported quarter.
Given a gradually improving interest rate environment, the investment income, indicating a major component to the top line, has likely improved.
The company’s fee-based revenue sources coupled with improved investment income likely have driven increased revenues. The Zacks Consensus Estimate for revenues is pegged at $3.1 billion, reflecting a 10.8% year-over-year increase.
Assets under management are expected to have improved owing to better performance in asset management and asset accumulation segments.
The company’s bottom line likely has benefited from share buybacks.
Given its expanded suite of investment options, the company expects solid cash flows in core US retirement plan market in the quarter to be reported.
However, escalating expenses are expected to have weighed on desired margin expansion.
The Zacks Consensus Estimate for the third quarter is pegged at $1.29 per share, reflecting a 12.4% year-over-year rise.
What Our Quantitative Model Predicts
Our proven model shows that Principal Financial is likely to beat estimates this quarter. This is because a stock has the right combination of two main ingredients — a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for an earnings beat.
Zacks ESP: Principal Financial has an Earnings ESP of +0.33% as the Most Accurate estimate of $1.30 is pegged higher than the Zacks Consensus Estimate of $1.29. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Principal Financial Group Inc Price and EPS Surprise
Principal Financial Group Inc Price and EPS Surprise | Principal Financial Group Inc Quote
Zacks Rank: Principal Financial carries a Zacks Rank #2, which increases the predictive power of ESP. You can see the complete list of today’s Zacks #1 Rank stocks here.
We caution against all Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Other Stocks to Consider
Some other stocks worth considering from the finance sector with the right combination of elements to come up with an earnings beat this quarter are as follows:
Prudential Financial (PRU - Free Report) is set to report third-quarter earnings on Nov 1 with an Earnings ESP of +0.07% and carries a Zacks Rank of 2.
Lincoln National Corporation (LNC - Free Report) has an Earnings ESP of +0.05%. This #2 Ranked company is slated to report third-quarter earnings on Nov 1.
American Equity Investment Life Holding Company (AEL - Free Report) has an Earnings ESP of +0.40%. This Zacks #2 Ranked company is set to report third-quarter earnings on Nov 6.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>