Principal Financial Group Fell on January 30


Feb. 2 2018, Updated 7:32 a.m. ET

Principal Financial Group

Principal Financial Group (PFG), which is a global financial investment management leader that offers financial products and services, was among the S&P 500’s top losers on January 30. Principal Financial Group traded with strength for four weeks and started this week on a weaker note. Following the disappointing weekly start, Principal Financial Group opened lower on Tuesday and declined to two-month low price levels.

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The selling pressure in Principal Financial Group increased after the weaker-than-expected quarterly earnings report. According to management, the EPS (earnings per share) in 4Q17 was $1.19, which is less than the forecast of $1.37. The fiscal 2017 EPS was $5.04, which is below analysts’ forecast of $5.22. Despite missing the estimates, the fiscal EPS is 11% higher than the EPS of $4.55 in 2016.

Principal Financial Group also missed the revenue forecast. According to the earnings report, the revenue in 4Q17 was $3.28 billion—a fall of 8.4% from $3.58 billion in the same period a year ago. The revenue was below analysts’ forecast of $3.53 billion. On the other hand, the fiscal 2017 revenue was $13.57 billion—an increase of 9.8% from the revenue of $12.38 billion in fiscal 2016.

Amid the dented sentiment, Principal Financial Group declined 8.1% to $68.5 on Tuesday. Principal Financial Group is part of the S&P 500 Financials sector, which declined 1.2% on January 30.


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