Principal Financial Set for Q4 Earnings with Mixed Expectations

Principal Financial anticipates a profit increase to $1.98 per share, marking an 8.2% rise from last year. However, the company has underperformed in recent quarters, leading to cautious analyst sentiment.

Date: 17-01-2025

AI Rating: 5

Earnings Per Share (EPS)
Principal Financial is expected to report a Q4 profit of $1.98 per share, reflecting an 8.2% increase from $1.83 in the same quarter last year. Furthermore, the adjusted EPS for fiscal 2024 is anticipated to be $7.01, up from $6.55 in fiscal 2023, indicating positive growth forecasts for upcoming earnings reports.
Performance Overview
Despite the expected increase in EPS for Q4, it is notable that the company has missed consensus EPS estimates in three of the last four quarters, including a significant miss of 12.4% in Q3 due to lower investment management revenues and rising expenses. The drop in shares by 6.6% post-Q3 earnings release underscores concerns regarding profitability and financial health.
Cautious Analyst Sentiment
Analysts currently hold a cautious stance on Principal Financial, reflected in the overall “Hold” rating. This sentiment comes amid an underperformance compared to the S&P 500’s noteworthy gains, with the company achieving only a 1.7% increase over the past year, significantly lagging behind broader market trends. As such, while there is optimism surrounding EPS growth, ongoing performance issues and mixed past results may temper investor expectations.
Conclusion
In summary, while there is positive anticipation for EPS figures, the company's recent struggles and lackluster performance could lead to volatility in its stock price around the earnings announcement.

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