Principal Financial Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Principal Financial (NYSE:PFG) will unveil its latest earnings on Thursday, October 25, 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 50 cents per share, a decline of 18% 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 75 cents during the last month. Analysts are projecting profit to rise by 3.3% compared to last year’s $2.67.

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 2 cents, reporting profit of of 72 cents per share against a mean estimate of net income of 74 cents per share.

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A Look Back: In the second quarter, profit fell 31.9% to $181.4 million (58 cents a share) from $266.3 million (80 cents a share) the year earlier, missing analyst expectations. Revenue fell 9.5% to $2.12 billion from $2.34 billion.

Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $2.53 (9.9%), from $25.63 to $28.16. 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 September 14, 2012 and September 26, 2012 when shares fell for nine straight days, dropping 8.1% (-$2.37) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 7.9% in revenue from the year-earlier quarter to $2.19 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 8.7% in the third quarter of the last fiscal year, 13.2% in fourth quarter of the last fiscal year and 5.6% in the first quarter and then fell again in the second quarter.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 2.5% in the first quarter before dropping in the second quarter.

Analyst Ratings: There are mostly holds on the stock with eight of 14 analysts surveyed giving that rating.

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

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