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Principal Financial (PFG) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

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Principal Financial (PFG - Free Report) reported $3.48 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 1%. EPS of $1.72 for the same period compares to $1.69 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $3.58 billion, representing a surprise of -2.91%. The company delivered an EPS surprise of +4.24%, with the consensus EPS estimate being $1.65.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Principal Financial performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Principal Asset Management Segment - Principal International - AUM, end of period: $136.3 billion versus $168.47 billion estimated by four analysts on average.
  • Retirement and Income Solutions Segment - Account Values, end of period: $472.10 versus the four-analyst average estimate of $607.04.
  • Principal Asset Management Segment - Principal Global Investors - AUM, end of period: $469 billion versus the four-analyst average estimate of $478.03 billion.
  • Revenue- Net investment income: $989.20 million versus $1.02 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +8.9% change.
  • Revenue- Premiums and other considerations: $1.46 billion versus the five-analyst average estimate of $1.56 billion. The reported number represents a year-over-year change of -1.9%.
  • Revenue- Fees and other revenues: $1.05 billion compared to the $1 billion average estimate based on five analysts. The reported number represents a change of +3% year over year.
  • Revenue- Principal Asset Management Segment- Principal Global Investors- Total: $424.60 million versus the four-analyst average estimate of $397.60 million. The reported number represents a year-over-year change of +4.6%.
  • Revenue- Retirement and Income Solutions: $1.65 billion versus $1.69 billion estimated by four analysts on average.
  • Revenue- Benefits and Protection Segment- Specialty Benefits- Net Investment Income: $45.60 million versus $42.14 million estimated by four analysts on average.
  • Revenue- Benefits and Protection Segment- Specialty Benefits- Total: $816.60 million versus $783.54 million estimated by four analysts on average.
  • Revenue- Retirement and Income Solutions Segment- Net investment income: $672.20 million versus the four-analyst average estimate of $643.34 million.
  • Revenue- Principal Asset Management Segment- Principal International- Net investment income: $130.80 million compared to the $226.19 million average estimate based on four analysts.
View all Key Company Metrics for Principal Financial here>>>

Shares of Principal Financial have returned -7.1% over the past month versus the Zacks S&P 500 composite's -3.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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