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What's in Store for Principal Financial (PFG) in Q3 Earnings?

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Principal Financial Group, Inc. (PFG - Free Report) is slated to report third-quarter 2021 results on Oct 26, after market close. The company delivered an earnings surprise of 11.11% in the last reported quarter.

Factors at Play

Principal Financial third-quarter results are likely to reflect benefits from leadership in retirement and long-term savings, group benefits and protection in the United States, retirement and long-term savings in Latin America and Asia plus global asset management.

Premiums at the Retirement and Income Solutions segment are likely to have been weighed down by lower sales of single premium individual and group annuities with life contingencies.

Investment income is expected to have benefited from favorable U.S. market performance of  certain alternative investments.

The Zacks Consensus Estimate for third-quarter 2021 revenues is pegged at $4 billion, indicating an increase of 21.1% from the year-ago quarter reported figure.

Assets under management is likely to have benefited from extensive distribution footprint, best-in-class solutions, favorable market performance and the migration of some of the Institutional Retirement & Trust (IRT) retirement business. This is likely to have aided revenue improvement at Principal Global Investors.

Expenses are likely to have decreased due to lower operating expenses and benefits, claims and settlement expenses.

Continued share buybacks are likely to have provided additional upside to the bottom line.

The Zacks Consensus Estimate for third-quarter 2021 earnings stands at $1.59 per share, indicating an increase of 87.1% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict a likely earnings beat for Principal Financial this time around. This is because it needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which is not the case below.

Earnings ESP: Principal Financial has an Earnings ESP of -0.11%. This is because the Most Accurate Estimate of $1.58 is pegged lower than the Zacks Consensus Estimate of $1.59. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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

Stocks to Consider

Some stocks from the finance sector also with the right combination of elements to surpass estimates this time around are as follows:

Ameriprise Financial (AMP - Free Report) has an Earnings ESP of +1.10% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ares Management (ARES - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank #2.

Affiliated Managers(AMG - Free Report) has an Earnings ESP of +0.34% and a Zacks Rank #3.