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What's in Store for Principal Financial (PFG) in Q2 Earnings?

Principal Financial Group, Inc. PFG is slated to report second-quarter 2022 earnings on Aug 8, after market close. PFG delivered an earnings surprise in each of the last four quarters, the average being 9.71%.

Factors at Play

Principal Financial second-quarter results are likely to reflect growth in the business, higher earnings from equity method investments and higher net customer cash flow.

Premiums in the Retirement and Income Solutions segment are likely to have been affected by lower sales of the single premium group and individual annuities with life contingencies.

Investment income is expected to have benefited from higher variable investment income, growth in invested assets, higher inflation-based investment returns on Latin America average invested assets and cash as well as favorable U.S. market performance on certain alternative investments.

Growth in the business, higher management fee revenues as a result of increased average AUM, increase in variable investment income, higher earnings from equity method investments in Brazil, higher premiums and fees in the Specialty Benefits insurance business are likely to have benefited revenue growth in the to-be-reported quarter.

The Zacks Consensus Estimate for second-quarter 2022 revenues is pegged at $3.24 billion, indicating a decline of 10.5% from the year-ago quarter reported figure.

Assets under management is likely to have benefited from favorable market performance, higher net customer cash flow and positive market returns.
Expenses are likely to have increased due to higher benefits, claims and settlement expenses and dividends to policyholders.

Operating expenses are likely to have increased due to an increase in DAC amortization expense and an increase in non-variable staff costs. The increase is likely to have been offset by a decrease in amounts credited to employee accounts in a non-qualified defined contribution pension plan.

Continued share buybacks are likely to have provided additional upside to the bottom line.

The Zacks Consensus Estimate for second-quarter 2022 earnings stands at $1.39 per share, indicating a decline of 18.2% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Principal Financial this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which is not the case here.

Earnings ESP: Principal Financial has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.39. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Principal Financial Group, Inc. Price and EPS Surprise

Principal Financial Group, Inc. Price and EPS Surprise
Principal Financial Group, Inc. Price and EPS Surprise

Principal Financial Group, Inc. price-eps-surprise | Principal Financial Group, Inc. Quote

Zacks Rank: Principal Financial currently carries a Zacks Rank #4 (Sell).  You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some stocks from the finance sector with the right combination of elements to surpass estimates this time around are as follows:

American Equity Investment Life Holding Company AEL has an Earnings ESP of +0.96% and a Zacks Rank of 3. The Zacks Consensus Estimate for American Equity Investment’s second-quarter 2022 earnings is pegged at 79 cents per share, indicating a decline of 19.4% from the year-ago reported figure.
AEL’s earnings beat estimates in two of the last four quarters and missed in the other two.

Atlas Corp. ATCO has an Earnings ESP of +9.72% and a Zacks Rank of 2. The Zacks Consensus Estimate for Atlas Corp.’s second-quarter 2022 earnings is pegged at 36 cents per share, indicating a decline of 7.6% from the year-ago reported figure.

ATCO’s earnings beat estimates in two of the last four quarters and missed in the other two.

Macro Bank Inc. BMA has an Earnings ESP of +27.14% and a Zacks Rank of 3. The Zacks Consensus Estimate for Macro Bank’s second-quarter 2022 earnings is pegged at 70 cents per share, indicating an increase of 94.4% from the year-ago reported figure.

BMA’s earnings beat estimates in three of the last four quarters and missed in one.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Principal Financial Group, Inc. (PFG) : Free Stock Analysis Report
 
American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report
 
Macro Bank Inc. (BMA) : Free Stock Analysis Report
 
Atlas Corp. (ATCO) : Free Stock Analysis Report
 
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