Principal Financial Group Inc. (NYSE:PFG) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.
Principal Financial Group Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 34.72% to $0.97 in the quarter versus EPS of $0.72 in the year-earlier quarter.
Revenue: Rose 9.11% to $2.31 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Principal Financial Group Inc. reported adjusted EPS income of $0.97 per share. By that measure, the company beat the mean analyst estimate of $0.82. It missed the average revenue estimate of $2.38 billion.
Quoting Management: “With a 29 percent increase in operating earnings over the year ago quarter, second quarter financial results rounded out a very strong first half of 2013,” said Larry D. Zimpleman, chairman, president and chief executive officer. “Our diversified model, both in terms of our mix of businesses and broad global footprint, combined with our ability to execute on our investment management strategy, continues to position us for long-term growth. In addition, the successful onboarding of Cuprum contributed meaningfully to our results this quarter and further positions us as a global investment management leader.”
Key Stats (on next page)…
Revenue increased 6.69% from $2.17 billion in the previous quarter. EPS increased 22.78% from $0.79 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.84 and has not changed. For the current year, the average estimate has moved down from a profit of $3.32 to a profit of $3.31 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)