Earnings Preview: Principal Financial Group

| About: Principal Financial (PFG)

Principal Financial Group (NYSE:PFG) is expected to report Q4 earnings on Monday, February 9 after the market close, with a conference call scheduled for Tuesday, February 10 at 10:00 am ET.


The consensus estimate for EPS is 66c and the consensus estimate for revenue is $2.69B, according to First Call. The consensus range for EPS is 50c-84c, while the consensus range for revenue is $2.61B-$2.79B.

Analyst Views

Principal Financial Group announced in December that it expects 2009 operating EPS to be between $2.75-$3.25. Life insurers' Q4 results have been mixed, with Unum (NYSE:UNM) beating expectations and MetLife (NYSE:MET) and Prudential (NYSE:PRU) reporting weaker than expected results.

Meanwhile, research firms have been mostly bearish on Principal Financial Group. UBS recently recommended selling into the recent rally in the life insurance sector, and specifically mentioned Principal Financial cautiously. Similarly, JPMorgan in December said it was cautious on the life insurance sector in general and Principal Financial in particular. The firm believes weak earnings, poor operating trends, and capital concerns will limit upside in the life insurance sector.