NYSE$GNW

Genworth Financial Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Genworth's financial performance was solid, marked by strategic debt reduction and capital return initiatives.

Genworth Financial reported a net income of $104 million and an adjusted operating income of $159 million for Q3 2022. The company achieved its debt target, stabilized the legacy LTC book, and initiated a program to return capital to shareholders.

  • Net income was reported at $104 million, or $0.20 per diluted share.
  • Adjusted operating income was $159 million, or $0.31 per diluted share.
  • Enact segment's adjusted operating income was $156 million.
  • The company executed $19 million in share repurchases during the quarter.

Headline financials

Total Revenue

$1.84B

Previous: $2.07B-11.2%
EPS (adj)

$0.31

Previous: $0.46-32.6%
Adjusted Operating Income

$159M

Previous: $239M-33.5%
Holding Co. Cash

$145M

Previous: $638M-77.3%
Free Cash Flow

$104M

Previous: $314M-66.9%
Net Income

$104M

Previous: $314M-66.9%
Operating Income

$159M

Previous: $239M-33.5%
Gross Profit

$304M

Previous: $804M-62.2%
Cash & Equivalents

$60.7B

Previous: $75.3B-19.4%
Total Assets

$85.9B

Previous: $99.9B-14.0%
Stock-Based Comp

$9M

Previous: $7M+28.6%

Revenue & EPS history

Genworth · Revenue · Quarterly

$1.84B

Q3 2022-11.2%vs Q3 2021
Beat estimate in 0 of 7 quarters(0%)
ActualEstimate

Forward guidance

Genworth anticipates higher free cash flow, offering increased capital return opportunities and growth investments.

Tailwinds

  • Higher free cash flow expected going forward.
  • Financial flexibility will increase.
  • Greater opportunity for increased capital return to shareholders.
  • Opportunities for investments in growth will rise.
  • Company expects to fully satisfy GSEs restrictions by year-end 2022 and to have the restrictions removed in early 2023

Headwinds

  • Unspecified uncertainties and risks in global political, economic, business, market, regulatory and other factors.
  • Potential difficulties in executing strategic plans, including debt reduction and maximizing Enact Holdings value.
  • Risks related to estimates, assumptions, and valuations, including reserve adequacy and the impact of COVID-19.
  • Liquidity, financial strength, and credit rating concerns, including the impact of Enact Holdings' dividend capacity.
  • Regulatory and legal risks, including changes in laws and regulations and the inability to obtain rate action increases.

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 Q3 2022

Historical avgQ3 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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