Principal Financial (PFG) Q1 Earnings Miss Estimates

Group 1: Earnings Performance - Principal Financial reported quarterly earnings of $1.81 per share, missing the Zacks Consensus Estimate of $1.85 per share, but showing an increase from $1.65 per share a year ago, resulting in an earnings surprise of -2.16% [1] - The company posted revenues of $4.01 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.98%, compared to year-ago revenues of $3.8 billion [2] - Over the last four quarters, Principal Financial has not surpassed consensus EPS estimates, but has topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Principal Financial shares have lost about 4.4% since the beginning of the year, while the S&P 500 has declined by 8.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $2.07 on $4 billion in revenues, and $8.22 on $15.94 billion in revenues for the current fiscal year [7] Group 3: Industry Context - The Zacks Industry Rank indicates that the Insurance - Multi line sector is currently in the top 14% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The estimate revisions trend for Principal Financial is mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]