2023-07-28 12:15:48 ET
- Principal Financial ( NASDAQ: PFG ) stock fell 4.6% on Friday after the company posted Q2 earnings that missed estimates , hurt by pressured net cash flows and weak results from three of its segments.
- Q2 adjusted EPS was $1.53 vs. $1.65 in Q2 2022. Assets under management totaled $674B, which is included in assets under administration of $1.5T.
- Principal Global Investors operating revenue (less pass-through expenses) declined 16.1% Y/Y to $359.6M due to lower performance and management fees.
- Retirement and Income Solutions net revenue slipped 1.8% Y/Y to $639.9M due to lower variable investment income.
- Life Insurance pre-tax operating earnings dropped 62.1% Y/Y to $26.8M, hurt by lower net investment income.
- "Despite pressured net cash flow in the quarter, we have momentum going into the remainder of 2023, particularly within global asset management," said CEO Dan Houston.
- "While we expect PFG to argue that its outlook/momentum bodes well for improvement in H2, we found Q2 results to be generally below expectations," said Jefferies analyst Suneet Kamath.
- Earlier, Principal Financial ( PFG ) was upgraded at Jefferies.
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Principal Financial stock falls 5% on Q2 earnings miss amid pressured net flows