Principal Financial Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Principal Financial (NYSE:PFG) will unveil its latest earnings on Thursday, July 26, 2012. 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 analyst estimate is for net income of 74 cents per share, a rise of 1.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 78 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 76 cents during the last month. For the year, analysts are projecting profit of $3.03 per share, a rise of 9.8% from last year.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported net income of 70 cents per share versus a mean estimate of profit of 74 cents per share.

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Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price fell $3.14 (-10.9%), from $28.72 to $25.58. The stock price saw one of its best stretches over the last year between November 25, 2011 and December 7, 2011, when shares rose for nine straight days, increasing 19.1% (+$4.10) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 8.5% (-$2.19) over that span.

A Look Back: In the first quarter, profit rose 2.5% to $209.7 million (66 cents a share) from $204.5 million (60 cents a share) the year earlier, but fell short analyst expectations. Revenue fell 5.6% to $2.1 billion from $2.22 billion.

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

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 8.7% in the third quarter of the last fiscal year and 13.2% in fourth quarter of the last fiscal year before falling again in the first quarter.

Heading into this earnings announcement, the company is trying build on some positive momentum from last quarter’s income increase. After net income declines in the third quarter of the last fiscal year and fourth quarter of the last fiscal year, profit rose in the first quarter.

Wall St. Revenue Expectations: On average, analysts predict $2.18 billion in revenue this quarter, a rise of 1.4% from the year-ago quarter. Analysts are forecasting total revenue of $8.71 billion for the year, a rise of 4.6% from last year’s revenue of $8.33 billion.

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

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