Principal Financial Group Earnings: Beats Estimates

S&P 500 (NYSE:SPY) component Principal Financial Group Inc. (NYSE:PFG) reported net income above Wall Street’s expectations for the third 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 Inc. Earnings Cheat Sheet

Results: Net income for Principal Financial Group Inc. rose to $179.7 million (60 cents per share) vs. $71.9 million (23 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year-earlier quarter.

Revenue: Rose 29.9% to $2.64 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Principal Financial Group Inc. beat the mean analyst estimate of 49 cents per share. It beat the average revenue estimate of $2.18 billion.

Quoting Management: “Business momentum continued to accelerate in the third quarter. With strong sales, net cash flows and record assets under management, we feel well positioned going into 2013. However, we continue to see macroeconomic headwinds, including foreign exchange and low interest rates, that will pressure financial performance in the near term,” said Larry D. Zimpleman, chairman, president and chief executive officer of Principal Financial Group, Inc.

Key Stats:

The company trumped estimates last quarter after falling shy in the two quarters prior. In the second quarter, it missed the mark by 2 cents, and in the first quarter, it came in under estimates by 4 cents.

The increase in profit last quarter comes after net income fell in the previous quarter. In the second quarter, net income declined 31.9% to $181.4 million.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 81 cents a share to 77 cents over the last ninety days. The average estimate for the fiscal year is $2.68 per share, down from $3 ninety days ago.

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

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