What caused PFG's Q3 2024 earnings to drop sharply?

Principal Financial Group (PFG) experienced a drop in Q3 2024 earnings, as indicated by a reduction in estimated EPS from $1.95 to $1.99 by Zacks Research. The reasons for this decline can be analyzed as follows:

1. **Market Conditions and Business Segments**: Principal Financial's second quarter performance was affected by challenging market conditions, including unfavorable equity market movements and persistently low interest rates. These factors impacted the company's variable investment income and spread-based businesses, leading to a decrease in earnings. Additionally, the company faced a bifurcated market environment, with small-cap and international equities underperforming the S&P 500.
2. **Economic Headwinds and Currency Impact**: The company's international operations, particularly in Brazil, were negatively affected by foreign currency headwinds, which impacted the performance of Principal International. Moreover, higher expenses related to severance in Principal Global Investors and Corporate, along with tax items, also contributed to the earnings decline.

In summary, PFG's Q3 2024 earnings drop can be attributed to challenging market conditions, economic headwinds, and currency impact.

|code|Ticker|Name|Date|Net Income (FY) YoY|Net Income (FY)|market_code|
|---|---|---|---|---|---|---|
|PFG|PFG.O|Principal Financial Group|2023|-86.0323084940073|6.701E8|185|
|PFG|PFG.O|Principal Financial Group|2024|138.4569467243695||185|

|code|Ticker|Name|Date|Total Revenue (FY)|Total Revenue (FY) YoY|market_code|
|---|---|---|---|---|---|---|
|PFG|PFG.O|Principal Financial Group|2023|1.36658E10|-22.070471769663722|185|
|PFG|PFG.O|Principal Financial Group|2024||18.015044856503096|185|