NYSE$GNW

Genworth Financial Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Genworth's financial performance showed a mixed outcome with net income decreasing, but strategic progress was made with debt reduction and share repurchase authorization.

Genworth Financial reported a net income of $149 million and adjusted operating income of $131 million for Q1 2022. The company announced a $350 million share repurchase authorization, marking their first shareholder return program in over 13 years. The U.S. Life Insurance segment experienced an adjusted operating loss, while Enact demonstrated strong performance.

  • Net income was $149 million, or $0.29 per diluted share, compared to $187 million, or $0.37 per diluted share, in Q1 2021.
  • Adjusted operating income was $131 million, or $0.25 per diluted share, compared to $168 million, or $0.33 per diluted share, in Q1 2021.
  • Announced a $350 million share repurchase authorization, the first shareholder return program in over 13 years.
  • Enact segment reported adjusted operating income of $135 million, with a 10% annual increase in insurance in-force and strong loss performance.

Headline financials

Total Revenue

$1.89B

Previous: $1.99B-4.7%
EPS (adj)

$0.25

Previous: $0.33-24.2%
Adjusted Operating Income

$131M

Previous: $168M-22.0%
Holding Co. Cash

$215M

Previous: $757M-71.6%
Free Cash Flow

$149M

Previous: $187M-20.3%
Net Income

$149M

Previous: $187M-20.3%
Operating Income

$131M

Previous: $168M-22.0%
Gross Profit

$628M

Previous: $636M-1.3%
Cash & Equivalents

$68.9B

Previous: $0.00
Total Assets

$93.5B

Previous: $98.6B-5.1%
Stock-Based Comp

$10M

Previous: $11M-9.1%

Revenue & EPS history

Genworth · Revenue · Quarterly

$1.89B

Q1 2022-4.7%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Genworth's strategic plan aims to strengthen its financial position, maximize Enact Holdings' value, stabilize the legacy long-term care insurance block, advance long-term care growth initiatives, and return capital to shareholders. However, the company's ability to execute this plan is subject to various risks and constraints.

Tailwinds

  • Potential for dividend payments from Enact Holdings.
  • Possible improvements in business performance.
  • Potential for reinsurance or similar transactions.
  • Opportunities for asset sales, debt issuances, or securities offerings.
  • Possible identification and contracting with a strategic partner regarding a new long-term care insurance business.

Headwinds

  • Enact Holdings' ability to pay dividends may be restricted by GSEs' PMIERs requirements.
  • Inability to increase capital needed in the company's businesses in a timely manner and on anticipated terms.
  • Strategic priorities may change or become more costly or difficult to achieve.
  • Inability to establish a new long-term care insurance business or product offerings due to commercial and/or regulatory challenges.
  • Adverse tax or accounting charges, including new accounting guidance related to long-duration insurance contracts.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-1.2%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+3.1%

Avg return

30 days after

47%

34 / 72 earnings

Positive

+25.4%

Q2 2016

Best reaction

-37.7%

Q3 2014

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.4%+2.1%-2.5%
Q4 2025+2.6%+1.7%+0.1%
Q3 2025+0.2%-0.9%+1.1%
Q1 2025-1.0%+0.1%+2.8%
Q4 2024-7.9%+1.0%-9.0%
Q3 2024+7.0%+9.9%+14.3%
Q2 2024-3.2%-9.5%+2.5%
Q1 2024+8.9%+12.3%+6.1%
Q4 2023-2.8%+0.0%+2.8%
Q3 2023-9.5%-7.9%+2.6%
Q2 2023+0.8%-3.1%-10.5%
Q1 2023-13.5%-4.4%+3.3%
Q4 2022-5.2%+3.0%+6.6%
Q3 2022+1.7%-2.4%+8.4%
Q2 2022-1.6%-0.7%-0.7%
Q1 2022+11.1%+9.2%+10.0%
Q4 2021+1.5%+1.3%+3.6%
Q3 2021-1.1%-0.7%-9.8%
Q2 2021+0.6%+7.5%+11.3%
Q1 2021-1.8%-2.5%-4.5%
Q4 2020-18.2%-20.2%-15.3%
Q3 2020+3.7%+4.9%+16.1%
Q2 2020-13.7%-12.0%+1.7%
Q1 2020-10.7%-8.1%-1.2%
Q4 2019-3.2%+18.2%-7.6%
Q3 2019+3.5%+0.0%-4.5%
Q2 2019+2.3%+1.0%+14.6%
Q1 2019-1.3%+0.5%-20.2%
Q4 2018-1.9%-4.4%-21.2%
Q3 2018+1.4%-1.4%+11.8%
Q2 2018+1.7%+0.0%+1.3%
Q1 2018+7.6%+9.4%+24.6%
Q4 2017+2.8%-4.2%+5.9%
Q3 2017+0.9%+1.5%+0.3%
Q2 2017-1.5%-0.3%+0.0%
Q1 2017+1.3%+0.8%-2.4%
Q4 2016-3.1%-2.0%+13.7%
Q3 2016-4.1%-3.6%-1.7%
Q2 2016+25.4%+24.6%+68.2%
Q1 2016+16.3%
Q4 2015-12.1%
Q3 2015-11.2%
Q2 2015-18.9%
Q1 2015+13.1%
Q4 2014+5.7%
Q3 2014-37.7%
Q2 2014-14.3%
Q1 2014+5.1%
Q4 2013+4.4%
Q3 2013-0.2%
Q2 2013-2.2%
Q1 2013+3.3%
Q4 2012-2.7%
Q3 2012+8.8%
Q4 2011+6.6%
Q2 2012-12.2%
Q1 2012+2.2%
Q3 2011-0.4%
Q2 2011-2.6%
Q1 2011+0.3%
Q4 2010+1.1%
Q3 2010-7.9%
Q2 2010-13.4%
Q1 2009-6.8%
Q1 2010+5.7%
Q4 2007-0.3%
Q4 2009-0.3%
Q4 2008-0.3%
Q3 2008+2.4%
Q3 2009+2.4%
Q2 2009-1.7%
Q2 2008-1.7%

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