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Des Moines, Iowa-based Principal Financial Group, Inc. (PFG) is a leading global financial services company specializing in retirement, insurance, and asset management solutions. With a market cap of $17.4 billion, PFG serves millions of customers worldwide, offering innovative products to help individuals and businesses achieve financial security.
The asset manager is set to release its first-quarter results after the markets close on Thursday, Apr. 24. Ahead of the event, analysts expect the PFG to report a non-GAAP EPS of $1.88, representing a notable 13.9% increase from the year-ago quarter’s earnings of $1.65 per share. However, the company has missed the Street’s bottom-line estimates in each of the past four quarters.
For the full fiscal 2025, PFG’s earnings are expected to grow to $8.34 per share, up a staggering 19.7% from $6.97 in fiscal 2024. While in fiscal 2026, its earnings are expected to increase more than 11% year-over-year to $9.26 per share.
PFG stock prices have plunged nearly 11.5% over the past 52 weeks, notably underperforming the S&P 500 Index’s ($SPX) 2.1% uptick and the Financial Select Sector SPDR Fund’s (XLF) 12.3% gains during the same time frame.
Nonetheless, PFG stock prices rose 2.9% in the trading session after the release of its mixed Q4 results on Feb. 6. Driven by the positive change in the fair value of funds withheld embedded derivative, the company’s total revenues for the quarter surged 76.6% year-over-year to approximately $4.8 billion, exceeding the Street’s estimates by a notable margin. However, its adjusted profits increased by a modest 6% year-over-year to $1.94 per share, missing the consensus estimates by 51 bps.
Meanwhile, although the company has observed notable AUM inflows in recent quarters, it has also experienced significant outflows, leading to a net outflow in AUM over the past five quarters. Still, the company reported growth in AUM driven by solid performance of the securities market. However, due to the recent downturn in equities, the company’s AUM as of December 2024 dropped 3.8% quarter-on-quarter to $712.1 billion.
The consensus view on PFG is neutral, with an overall “Hold” rating. Out of the 16 analysts covering the stock, opinions include four “Strong Buys,” eight “Holds,” one “Moderate Sell,” and three “Strong Sells.” Its mean price target of $87.07 suggests a 21% upside potential from current price levels.
