Principal Financial Group Q4 Results Top Estimates

(RTTNews) - Investment manager Principal Financial Group, Inc. (PFG) reported Monday a profit for the fourth quarter that grew 9 percent from last year, reflecting improved revenues amid premium and fee revenue growth.

Both operating earnings per share and quarterly revenues topped analysts' expectations. The company also announced an eight percent increase in dividend for the first quarter.

"We ended 2013 with very strong results, posting both record total company operating earnings for the year and record assets under management. These results were particularly strong in light of continued macroeconomic volatility, demonstrating the strength of our global investment management strategy and our ability to focus and execute," Chairman, President and CEO Larry Zimpleman said in a statement.

The Des Moines, Iowa-based company reported net income of $233.4 million or $0.78 per share for the fourth quarter profit, higher than $214.9 million or $0.72 per share in the prior-year quarter.

Excluding items, operating earnings for the quarter was $286.0 million or $0.96 per share, compared to $240.3 million or $0.81 per share in the year-ago quarter.

On average, 21 analysts polled by Thomson Reuters expected the company to report earnings of $0.93 per share for the quarter. Analysts' estimates typically exclude special items.

Total operating revenues for the quarter grew percent to $2.74 billion from $2.29 billion in the same quarter last year, and topped ten Wall Street analysts' consensus estimate of $2.45 billion.

Revenue from premiums and other considerations grew to $1.02 billion from $700.0 million, as well as fees and other revenues totaled $881.8 million, up from $717.7 million last year. Meanwhile, net investment income declined to $837.8 million from $875.4 million a year ago.

The company reported record assets under management of $292.1 billion, including net cash flows of $1.0 billion.

The company also declared an eight percent increase in dividend for the first quarter of 2014 to $0.28 per share of common stock, payable on March 28 to shareholders of record at the close of business on March 10, 2014.

For fiscal 2013, the company reported net income of $879.7 million or $2.95 per share, higher than $773.6 million or $2.58 per share in the prior year. Excluding items, operating earnings for the year was $1.06 million or $3.55 per share, compared to $808.8 million or $2.69 per share in the year ago. Total operating revenues for the full year grew to $9.61 billion from $9.18 billion in the previous year.

Street was looking for full-year 2013 earnings of $3.53 per share on annual revenues of $9.36 billion.

"Looking ahead, we'll continue to take advantage of opportunities created by changing global demographics by having the right strategy in the right markets at the right time to generate growth for years to come," Zimpleman added.

PFG closed Monday's regular trading session at $41.71, down $1.86 or 4.27% on a volume of 2.13 million shares.