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What Awaits Principal Financial (PFG) This Earnings Season?

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Principal Financial Group (PFG - Free Report) is slated to report third-quarter 2019 results on Oct 24, after market close. The company delivered positive earnings surprise in the last two reported quarters.

Let’s see how things are shaping up for this announcement.

Principal Financial third-quarter earnings are likely to have benefited from expanded global distribution network and a compelling portfolio of retirement, investment and protection solutions.

Higher fee-based revenues are likely to have boosted revenues. The Zacks Consensus Estimate for revenues is pegged at $3.9 billion.

Assets under management are likely to have benefited from better performances at its three asset management and asset accumulation segments that in turn are driven by extensive distribution footprint, best-in-class solutions, strategic buyouts and operational discipline.

Operating expenses are likely to have increased as a result of higher branding expenses, benefit costs as well as variable sales expenses.

Share repurchases are likely to have provided additional upside to the bottom line.

The Zacks Consensus Estimate for earnings stands at $1.44 per share, indicating a decrease of 13.8% from the year-ago reported figure.

Principal Financial Group, Inc. Price and EPS Surprise

What Our Quantitative Model Predicts

Our proven model predicts an earnings beat for Principal Financial this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Principal Financial has an Earnings ESP of +0.87%. This is because the Most Accurate Estimate of $1.46 is pegged higher than the Zacks Consensus Estimate of $1.44. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Principal Financial carries a Zacks Rank #3.   

Other Stocks to Consider   

Some other stocks from the investment management industry with the right combination of elements to surpass estimates this time around are as follows:

Blackstone Group (BX - Free Report) has an Earnings ESP of +3.70% and a Zacks Rank of 3. The company will announce third-quarter earnings on Oct 23. You can see the complete list of today’s Zacks #1 Rank stocks here.

Federated Investors is set to report third-quarter earnings on Oct 24. The stock has an Earnings ESP of +0.76% and a Zacks Rank of 3.

Ares Management (ARES - Free Report) has an Earnings ESP of +3.36% and a Zacks Rank #3. The company is slated to release third-quarter earnings on Oct 31.

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