Principal Financial Group, Inc. (NASDAQ:PFG) Q1 2025 Earnings Preview

• Wall Street expects earnings per share (EPS) of $1.85 and revenue of approximately $3.99 billion for the first quarter of 2025.
• Positive trends such as higher average assets under management (AUM) and increased sales of single premium group annuities are likely to boost PFG's performance.
• Despite a negative earnings surprise in the previous quarter, PFG's strategic focus suggests a potential turnaround with a price-to-earnings (P/E) ratio of 10.76 and a debt-to-equity ratio of 0.37.

Principal Financial Group, Inc. (NASDAQ:PFG) is a financial services company that offers a range of products and services, including retirement solutions, insurance, and asset management. As PFG prepares to release its first-quarter 2025 earnings on April 24, Wall Street anticipates earnings per share (EPS) of $1.85 and revenue of approximately $3.99 billion.

The company's expected performance is supported by several positive trends. PFG is likely to benefit from higher average assets under management (AUM) and increased average invested assets in fixed maturities. Additionally, a boost in sales of single premium group annuities is expected to contribute to a rise in fee revenues and higher yields.

Operating revenues for PFG are projected to have grown due to increased premiums and higher fees in its Retirement and Income Solutions, Principal Asset Management, and Benefits and Protection segments. The Zacks Consensus Estimate for first-quarter 2025 revenues is $3.97 billion, reflecting a 4.4% increase from the previous year.

Despite a negative earnings surprise in the previous quarter, PFG's strategic focus on enhancing revenue streams and capitalizing on favorable market conditions suggests a potential turnaround. Analysts have revised the consensus EPS estimate downward by 2.4% over the past 30 days, indicating a reassessment of initial forecasts.

PFG's financial metrics, such as a price-to-earnings (P/E) ratio of 10.76 and a price-to-sales ratio of 1.02, provide insight into the market's valuation of the company. With an earnings yield of 9.30% and a debt-to-equity ratio of 0.37, PFG's financial leverage and profitability are key factors for investors to consider.