Principal Financial Group Inc. Earnings Cheat Sheet: Streak of Three Straight Profit Rises Snapped

S&P 500 (NYSE:SPY) component Principal Financial Group Inc. (NYSE:PFG) reported a lower net income in third quarter, missing analysts’ estimates. Principal Financial Group promotes investment, saving, and insurance products and services in the U.S. and some international markets.

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Principal Financial Group Earnings Cheat Sheet for the Third Quarter

Results: Net income for the asset management company fell to $63.7 million (20 cents per share) vs. $142.2 million (44 cents per share) a year earlier. This is a decline of 55% from the year earlier quarter.

Revenue: Rose to $2.03 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PFG fell short of the mean analyst estimate of 71 cents per share. It fell short of the average revenue estimate of $2.08 billion.

Quoting Management: “Although operating earnings were negatively impacted by extreme market events, the momentum of our businesses remained strong in the third quarter,” said Larry D. Zimpleman, chairman, president and chief executive officer. “We expect full-year 2011 sales and net cash flows for fee-based businesses to be significantly improved from 2010.”

Key Stats:

Last quarter’s profit decrease breaks a streak of three consecutive quarters of year-over-year profit increases. Net income rose 87.1% in the second quarter from the year earlier, while the figure rose 2.8% in the first quarter and 38.2% in the fourth quarter of the last fiscal year.

The company fell short of estimates last quarter after being in line with expecations the quarter before with net income of 73 cents.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 75 cents per share, down from 79 cents ninety days ago. For the fiscal year, the average estimate has moved down from $2.98 a share to $2.90 over the last ninety days.

Competitors to Watch: Unum Group (NYSE:UNM), AFLAC Incorporated (NYSE:AFL), American Independence Corp. (NASDAQ:AMIC), CIGNA Corporation (NYSE:CI), WellPoint, Inc. (NYSE:WLP), Universal American Corp. (NYSE:UAM), Humana Inc. (NYSE:HUM), HealthMarkets, Inc. (NYSE:UCI), Citizens Financial Corp. (CFIN), and Triple-S Management Corp. (NYSE:GTS).

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(Source: Xignite Financials)

 

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