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Voya Financial (VOYA) Q1 Earnings Lag Estimates, Rise Y/Y

Zacks Equity Research

Voya Financial, Inc.’s VOYA first-quarter 2019 net operating income of $1.07 per share missed the Zacks Consensus Estimate by 5.3% due to lower revenues. However, the bottom line improved 23% year over year.
The company’s revenues of $1.4 billion decreased 20% from the year-ago quarter.

Assets under management and administration were $547 billion as of Mar 31, 2019.

Voya Financial, Inc. Price, Consensus and EPS Surprise

Voya Financial, Inc. Price, Consensus and EPS Surprise | Voya Financial, Inc. Quote

Segmental Update

Retirement’s adjusted operating earnings of $129 million increased 18.3% year over year on the back ofpositive DAC/VOBA and other intangibles, lower fee-based margin owing to low average asset balances, etc.

Investment Management posted adjusted operating earnings of $34 million and generated $1.1 billion of Institutional net flows, reflecting strong commercial growth in the business and the 13th straight quarter of positive institutional net flows.

Employee Benefits’ adjusted operating earnings were $38 million, up 19% year over year on the back of an improved loss ratio for Stop Loss and a rise in the Voluntary block.

Individual Life’s adjusted operating earnings were $48 million, up 182.4%year over year.

Corporate incurred adjusted operating losses of $55 million, narrower than the year-ago quarterly losses of $56 million owing to a decrease in the standard costs on account of its sale of substantially all its individual annuities businesses.

Financial Update

Voya Financial exited the first quarter with $705 million in excess capital.

In the quarter under review, the company completed its $250-million accelerated share repurchase deal and entered into a new $236-million accelerated share repurchase agreement.

Its board of directors also announced $500 million worth of an additional share buyback, which expires on Jun 30, 2020.

The company is intended to hike its common stock dividend to a minimum yield of 1% in the beginning of third-quarter 2019.

Zacks Rank and Performance of Other Peers

Voya Financial has a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Among other players from the insurance industry having posted first-quarter earnings so far, the bottom-line results of The Travelers Companies, Inc. TRV, Cincinnati Financial Corporation CINF and The Progressive Corporation PGR surpassed the respective Zacks Consensus Estimate.

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