- Principal Financial Group ( NASDAQ: PFG ) stock dipped 3% in extended trading on Wednesday as the company published its 2023 outlook for adjusted operating earnings growth .
- It expects adjusted operating EPS to advance 3%-6% in 2023 versus 2022, excluding significant variances in both periods and reflecting macroeconomic assumptions as of Dec. 31, 2022.
- The average analyst estimate, by comparison, sees the Y/Y growth rate at 4.55%
- Last year's macro headwinds, which impacted PFG's assets under management and account values, are pressuring expected EPS growth this year, it noted. The 2023 outlook reflects corporate segment pre-tax operating losses of -$375M to -$425M, and 8% equity market annual total return (6% price appreciation) as of Dec. 31, 2022.
- For the long-term, EPS growth is expected to be 9%-12%. PFG also sees return on equity climbing 14%-16% over the unspecified span, and anticipates 75-85% free capital flow conversion, including 40% dividend payout ratio.
- Conference call on March 2 at 10:00 a.m. ET.
- Previously, (Jan. 30) Principal Financial Q4 earnings topped consensus despite weakness across segments.
For further details see:
Principal Financial sees adjusted earnings rising up to 6% in 2023