Shares of Principal Financial Group closed sharply lower Friday in the first trading session after the investment and benefits company reported first-quarter results that fell well short of analysts' expectations.
The stock dropped $1.50, or 5.1 percent, to end the week at $27.69. Trading Friday was nearly three times normal volume.
Des Moines, Iowa-based Principal said late Thursday that its net income in the three months ended March 31 rose to $201.5 million, or 66 cents per share. That compared with $182 million, or 56 cents per share, in the same period a year earlier.
Revenue rose three percent, to $2.11 billion from $2.05 billion.
Adjusted for one-time items such as losses on investments, Principal earned 70 cents per share.
The results fell short of Wall Street analysts' projections. On average, they expected adjusted earnings of 74 cents per share, on revenue of $2.12 billion, according to data provider FactSet.
Analysts paid close attention to the results from Principal's big Full Service Accumulation segment, which offers retirement plans and similar products. Revenue in the division fell, hurt by lower investment income. Costs were about flat.
