Financial services company Principal Financial Group (NASDAQGS:PFG) will be reporting results this Monday afternoon. Here’s what you need to know.
Principal Financial Group missed analysts’ revenue expectations by 7% last quarter, reporting revenues of $3.69 billion, down 9.4% year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ net premiums earned estimates.
Is Principal Financial Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Principal Financial Group’s revenue to grow 11.5% year on year to $4.10 billion, improving from the 5.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.20 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Principal Financial Group has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Principal Financial Group’s peers in the insurance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Globe Life delivered year-on-year revenue growth of 4.3%, meeting analysts’ expectations, and Stewart Information Services reported revenues up 19.1%, topping estimates by 30.8%. Globe Life’s stock price was unchanged after the resultswhile Stewart Information Services was down 4.1%.
Read our full analysis of Globe Life’s results here and Stewart Information Services’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the insurance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.4% on average over the last month. Principal Financial Group is down 3.6% during the same time and is heading into earnings with an average analyst price target of $87.92 (compared to the current share price of $79.62).
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