Will Principal Financial (PFG) Surprise on Q2 Earnings? - Analyst Blog


Principal Financial Group Inc. ( PFG ) is set to report its second-quarter 2014 results on Jul 24. Last quarter, the company posted a 15.5% positive earnings surprise. Let's see how things are shaping up for this announcement.

Factors Influencing This Past Quarter

Increased focus on fee-based revenue sources will drive steady earnings for Principal Financial.

Accretion from strategic acquisitions is expected to drive asset under management growth, retaining its growth momentum. Lower share count, via share buyback, will a further give a boost to the bottom line.

However, the low interest rate environment will likely weigh upon investment results in the quarter to be reported.

Earnings Whispers?

Our proven model does not conclusively show that Principal Financial is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP :  Principal Financial has an Earnings ESP of 0.00%. That is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.01.

Zacks Rank : Principal Financial's Zacks Rank #2 (Buy) increases the predictive power of ESP. However, we also need to have a positive ESP to be confident about an earnings surprise.

Other Stocks to Consider

Here are some companies you may want to consider as our model shows these have the right combination of elements to post an earnings beat this quarter:  

Affiliated Managers Group Inc. ( AMG ), Earnings ESP of +1.16% and a Zacks Rank #2.

Credit Acceptance Corp . ( CACC ), Earnings ESP of +2.39% and a Zacks Rank #2.

Moody's Corp. ( MCO ), Earnings ESP of +6.06% and a Zacks Rank #3 (Hold).

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PRINCIPAL FINL (PFG): Free Stock Analysis Report

MOODYS CORP (MCO): Free Stock Analysis Report

CREDIT ACCEPT (CACC): Free Stock Analysis Report

AFFIL MANAGERS (AMG): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: PFG , MCO , CACC , AMG



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