Principal Financial Group Inc. Earnings: Misses Expectations as Profit Falls

S&P 500 (NYSE:SPY) component Principal Financial Group Inc. (NYSE:PFG) reported its results for the fourth quarter. 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 Fourth Quarter

Results: Net income for the asset management company fell to $164 million (54 cents per share) vs. $199.3 million (62 cents per share) a year earlier. This is a decline of 17.7% from the year earlier quarter.

Revenue: Fell 0.2% to $2.1 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Principal Financial Group Inc. fell short of the mean analyst estimate of 75 cents per share. Analysts were expecting revenue of $2.1 billion.

Quoting Management: “In 2011 we delivered solid operating earnings despite market challenges during the year. We again benefitted from business and geographic diversification with Principal International, Principal Global Investors and U.S. Insurance Solutions each delivering double-digit earnings growth for the year. The Retirement and Investor Service Accumulation2 businesses, which are directly impacted by the pace of the economic recovery, continue to show improvement with impressive sales growth and improved net cash flows,” said Larry D. Zimpleman, chairman, president and chief executive officer of Principal Financial Group, Inc. “I am more confident today than ever that The Principal is positioned for long-term growth with the right business mix and the right global footprint.”

Key Stats:

The company has now fallen short of estimates in the last two quarters. In the third quarter, it missed expectations by 10 cents with net income of 61 cents versus a mean estimate of net income of 71 cents per share.

Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the first quarter of the next fiscal year has reached 75 cents per share, up from 74 cents. At $2.81 per share, the average estimate for the fiscal year has fallen from $2.83 ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com