Principal Financial Group Meets on the Top Line, Misses Where It Counts
Principal Financial Group (NYS: PFG) reported earnings on Feb. 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Principal Financial Group met expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share shrank.
Gross margins increased, operating margins improved, and net margins shrank.
Principal Financial Group booked revenue of $2.10 billion. The seven analysts polled by S&P Capital IQ expected a top line of $2.10 billion. Sales were 11% lower than the prior-year quarter's $2.11 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.71. The earnings estimates compiled by S&P Capital IQ averaged $0.74 per share on the same basis. GAAP EPS of $0.54 for Q4 were 11% lower than the prior-year quarter's $0.61 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 41.5%, 310 basis points better than the prior-year quarter. Operating margin was 14.6%, 210 basis points better than the prior-year quarter. Net margin was 8.2%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.12 billion. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $8.73 billion. The average EPS estimate is $3.17.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 187 members out of 223 rating the stock outperform, and 36 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 50 give Principal Financial Group a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Principal Financial Group is hold, with an average price target of $30.59.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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