Principal Financial Group (NASDAQ: PFG) reported Q2 EPS of $1.35, $0.02 worse than the analyst estimate of $1.37.

Company Highlights

• Second quarter 2018 net income attributable to Principal Financial Group, Inc. (PFG) of $456.6 million, or $1.58 per diluted share
• Second quarter 2018 non-GAAP operating earnings1 of $391.4 million, or $1.35 per diluted share
• Assets under management (AUM) of $666.6 billion, up 6 percent over second quarter 2017
• Company declares third quarter 2018 common stock dividend of $0.53 per share; a 13 percent increase over third quarter 2017

Highlights

• Net income attributable to PFG for second quarter 2018 increased 48 percent to $456.6 million, compared to $309.5 million for second quarter 2017. Net income per diluted share of $1.58 for second quarter 2018 compared to $1.06 in prior year quarter. The company benefited from a $99.5 million after-tax gain related to a sale of an equity method investment.
• Non-GAAP operating earnings for second quarter 2018 of $391.4 million, compared to $383.6 million for second quarter 2017. Non-GAAP operating earnings per diluted share (EPS) of $1.35 for second quarter 2018 compared to $1.31 for second quarter 2017.
• Quarterly common stock dividend of $0.53 per share for third quarter 2018 was authorized by the company’s Board of Directors, bringing the trailing twelve-month dividend to $2.05 per share, a 13 percent increase compared to the prior year trailing twelve-month period. The dividend will be payable on Sept. 28, 2018, to shareholders of record as of Sept. 6, 2018.

“I’m pleased with our results for the quarter and first six months of the year,” said Dan Houston, chairman, president and CEO of Principal. “We delivered $391 million of non-GAAP operating earnings in the second quarter. At $800 million year-to-date, non-GAAPoperating earnings are up 6 percent compared to the first half of 2017, despite some unfavorable macroeconomic conditions and our accelerated investment in digital business solutions.”

“We continue to create long-term shareholder value through our balanced approach to capital deployment,” added Houston. “In the first half of the year, we’ve returned over $670 million to shareholders through common stock dividends and share repurchases. Additionally, we’ve committed $130 million to strategic acquisitions to increase scale and capabilities in our global businesses. Our recent acquisition of financial technology company RobustWealth is an important step forward for Principal as we look to make investment advice more accessible to customers. RobustWealth provides us a suite of solutions for investment advisors, including a digital advice platform, goal-based investment tools, and efficient client onboarding.”

For earnings history and earnings-related data on Principal Financial Group (PFG) click here.