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Why Is Voya (VOYA) Up 10.2% Since Last Earnings Report?
VOYAVoya Financial(VOYA) ZACKS·2024-12-04 17:36

Core Insights - Voya Financial reported Q3 2024 adjusted operating earnings of 2.12pershare,exceedingestimatesby4.82.12 per share, exceeding estimates by 4.8% and showing a year-over-year increase of 2.4% [2] - The company's adjusted operating revenues reached 1.97 billion, a 7.6% increase year-over-year, driven by higher fee income and premiums [3] Financial Performance - Net investment income decreased by 7.5% year-over-year to 506million,whilefeeincomeroseby10.4506 million, while fee income rose by 10.4% to 489 million [3] - Premiums totaled 796million,reflectinga16.7796 million, reflecting a 16.7% increase from the previous year [3] - Total benefits and expenses increased by 11.4% year-over-year to 1.8 billion [3] Segment Analysis - Wealth Solutions reported adjusted operating earnings of 211million,up17.8211 million, up 17.8% year-over-year, primarily due to growth in fee-based revenues [4] - Health Solutions saw adjusted operating earnings decline by 56.6% year-over-year to 23 million, despite a 16% growth in annualized in-force premiums and fees [5] - Investment Management's adjusted operating earnings increased by 12.2% year-over-year to 55million,supportedbyhigherfee−basedrevenuesandnetinflowsof55 million, supported by higher fee-based revenues and net inflows of 3.8 billion [6] - Corporate incurred pre-tax adjusted operating losses of 59million,widerthanthe59 million, wider than the 52 million loss from the previous year [7] Financial Position - Voya Financial ended the quarter with cash and cash equivalents of 1.4billion,a75.71.4 billion, a 75.7% increase year-over-year [8] - Total investments were 36 billion, down 0.4% year-over-year, while long-term debt rose by 0.2% to 2.1billion[8]−Thefinancialleverageratiodeterioratedby280basispointsyear−over−yearto30.62.1 billion [8] - The financial leverage ratio deteriorated by 280 basis points year-over-year to 30.6% [8] - Book value per share increased by 5.9% year-over-year to 60.96 [8] Capital Management - The company returned 0.2billionofexcesscapitalinQ32024through0.2 billion of excess capital in Q3 2024 through 149 million in share repurchases and 44millionincommonstockdividends[9]MarketOutlook−EstimatesforVoyaFinancialhavetrendeddownwardrecently,withaZacksRankof3(Hold),indicatinganexpectationofin−linereturnsinthecomingmonths[12]−ThestockhasapoorGrowthScoreofF,aMomentumScoreofD,andaValueScoreofB,resultinginanaggregateVGMScoreofC[11]IndustryComparison−VoyaFinancialispartoftheZacksInsurance−LifeInsuranceindustry,whereLincolnNational(LNC)hasgained6.544 million in common stock dividends [9] Market Outlook - Estimates for Voya Financial have trended downward recently, with a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [12] - The stock has a poor Growth Score of F, a Momentum Score of D, and a Value Score of B, resulting in an aggregate VGM Score of C [11] Industry Comparison - Voya Financial is part of the Zacks Insurance - Life Insurance industry, where Lincoln National (LNC) has gained 6.5% over the past month, reporting revenues of 4.6 billion, a year-over-year decline of 1.5% [13] - Lincoln National is expected to post earnings of $1.83 per share for the current quarter, reflecting a year-over-year increase of 26.2% [14]