NYSE$VOYA

Voya Financial Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Voya's first quarter results were announced, revealing a net loss but growth in normalized adjusted operating earnings per share.

Voya Financial reported a net loss available to common shareholders of $(98) million, or $(0.71) per diluted share, but normalized adjusted operating earnings per share grew 26% year-over-year, driven by record earnings in Employee Benefits and strong organic growth in each of its businesses. The company had $612 million of excess capital as of March 31, 2020, and is on track to achieve targeted cost savings of at least $250 million by the end of 2020.

  • Net loss available to common shareholders was $(98) million, or $(0.71) per diluted share.
  • Adjusted operating earnings were $115 million, or $0.83 per diluted share, after tax.
  • Normalized adjusted operating earnings were $151 million, or $1.10 per diluted share, after tax.
  • Excess capital was $612 million as of March 31, 2020.

Headline financials

Total Revenue

$1.69B

Previous: $2.2B-23.3%
EPS (adj)

$1.10

Previous: $1.07+2.8%
Free Cash Flow

-$84M

Previous: $74M-213.5%
Net Income

-$84M

Previous: $74M-213.5%
Operating Income

$87M

Previous: $224M-61.2%
Gross Profit

$727M

Previous: $926M-21.5%
Cash & Equivalents

$1.03B

Previous: $1.03B+0.0%
Total Assets

$156B

Previous: $162B-3.9%

Revenue & EPS history

Voya · Revenue · Quarterly

$1.69B

Q1 2020-23.3%vs Q1 2019
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Voya · $225M total across 3 segments · Q1 2020

  • Retirement
    $124M-3.9%
  • Employee Benefits
    $61M+60.5%
  • Investment Management
    $40M+17.6%

Forward guidance

Voya expects that its earnings growth outlook will be affected by the uncertainties created by COVID-19, such as the magnitude of claims, changes to employment levels, and the ultimate shape of a future economic recovery. The company will revisit its earnings growth guidance ranges, including the previously shared $1.80 to $1.90 EPS guidance for the fourth quarter 2021, as it gains improved visibility. Voya expects the closing of the sale of its Individual Life and other legacy non-retirement annuities businesses by Sept. 30, 2020 and targeted cost savings of at least $250 million by the end of 2020 remain on track.

Tailwinds

  • Targeted cost savings of at least $250 million by the end of 2020 remain on track.
  • The sale of Individual Life and other legacy non-retirement annuities businesses is expected to close by Sept. 30, 2020.
  • Executing on organic growth plans.
  • Executing on cost savings plans.
  • Executing on capital management plans.

Headwinds

  • Earnings growth outlook will be affected by uncertainties created by COVID-19.
  • Magnitude of claims is uncertain.
  • Changes to employment levels are uncertain.
  • The ultimate shape of a future economic recovery is uncertain.
  • Medium and long-term earnings growth guidance is uncertain.

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 2020

Historical avgQ1 2020

+0.2%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+1.6%

Avg return

30 days after

47%

25 / 53 earnings

Positive

+10.0%

Q4 2022

Best reaction

-9.9%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.2%-3.7%+4.2%
Q4 2025-6.5%+1.2%-10.3%
Q3 2025-3.5%-3.5%-3.8%
Q1 2025+9.3%+15.8%+10.7%
Q4 2024+4.8%+5.0%+1.0%
Q3 2024-6.3%+1.6%+2.4%
Q2 2024-1.2%-7.5%-5.6%
Q1 2024+2.2%+2.4%+7.9%
Q4 2023-3.8%-2.3%-4.8%
Q3 2023+2.5%+6.1%+8.2%
Q2 2023-1.8%-2.4%-6.2%
Q1 2023-9.9%-8.2%-10.1%
Q4 2022+10.0%+8.9%+6.4%
Q3 2022-2.2%-2.0%-4.0%
Q2 2022+2.9%+1.8%+3.2%
Q1 2022+6.4%+0.8%+7.1%
Q4 2021+2.3%+1.0%-10.1%
Q3 2021-2.4%-2.8%-9.5%
Q2 2021+3.5%+4.2%-1.3%
Q1 2021-4.3%-1.9%-8.1%
Q4 2020-4.3%-5.8%+9.4%
Q3 2020+1.6%+6.8%+18.8%
Q2 2020+0.2%+4.2%+2.6%
Q1 2020-5.3%+1.7%+12.9%
Q4 2019-0.6%+0.4%-26.5%
Q3 2019+3.6%+3.3%+3.0%
Q2 2019-4.4%-5.9%-2.8%
Q1 2019-1.4%-0.9%+0.0%
Q4 2018+4.1%+1.8%+4.8%
Q3 2018+5.8%+6.9%+8.0%
Q2 2018-1.0%-0.5%-0.9%
Q1 2018-0.7%-0.7%-0.8%
Q4 2017+6.5%+5.3%+12.5%
Q3 2017+2.4%+3.8%+9.6%
Q2 2017+3.4%+4.2%-2.6%
Q1 2017-4.1%-3.8%-7.1%
Q4 2016-2.7%+0.0%-1.1%
Q3 2016-1.0%+2.0%+28.9%
Q2 2016+8.5%+11.5%+15.5%
Q1 2016-7.6%
Q4 2015-2.8%
Q3 2015-1.6%
Q2 2015-2.6%
Q1 2015+2.9%
Q4 2014+3.6%
Q3 2014+0.6%
Q2 2014-2.8%
Q1 2014-2.1%
Q4 2013+2.5%
Q3 2012+4.7%
Q3 2013+6.4%
Q2 2013-1.0%
Q1 2013+1.4%
Q2 2012
Q1 2012
Q4 2011
Q3 2011

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro