Principal Financial Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Principal Financial (NYSE:PFG) will unveil its latest earnings tomorrow, Thursday, January 31, 2013. Principal Financial Group promotes investment, saving, and insurance products and services in the U.S. and some international markets.

Principal Financial Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 74 cents per share, a rise of 4.2% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 77 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 75 cents during the last month. Analysts are projecting profit to rise by 5.4% compared to last year’s $2.61.

Past Earnings Performance: The company enters this earnings report having missed estimates the last four quarters. Last quarter, the company fell short of expectations by 4 cents, reporting net income of of 45 cents per share against a mean estimate of profit of 49 cents per share.

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A Look Back: In the third quarter, profit rose more than twofold to $187.9 million (60 cents a share) from $71.9 million (20 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 29.5% to $2.7 billion from $2.09 billion.

Here’s how Principal Financial traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Wall St. Revenue Expectations: Analysts are projecting a rise of 10% in revenue from the year-earlier quarter to $2.31 billion.

Analyst Ratings: With five analysts rating the stock as a buy, three rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 13.2% in the fourth quarter of the last fiscal year, 5.6% in the first quarter and 9.5% in the second quarter before climbing in the third quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 28.7% for the last four quarters.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)