Core Insights - Voya Financial reported Q2 2025 non-GAAP EPS of $2.46, exceeding analyst expectations of $2.05, marking a 12.8% increase from Q2 2024 [1][5] - Non-GAAP net revenue for the twelve months ended June 30, 2025, was $4.16 billion, while GAAP net income available to common shareholders decreased by 19.4% to $162 million due to investment losses and severance costs [1][5] - The company faced challenges in the Employee Benefits segment, with adjusted operating margin dropping to 3.7% from 19.1% year-over-year, and net revenues declining by 13.8% [1][9] Business Overview - Voya Financial operates in three main segments: Retirement, Investment Management, and Employee Benefits, focusing on financial planning, investment, and protection solutions [3] - The company aims to expand assets under management and integrate acquisitions, such as the OneAmerica retirement business, while maintaining operational discipline [4] Quarterly Highlights - The Retirement segment showed strong performance with pre-tax adjusted operating earnings rising from $214 million in Q2 2024 to $235 million in Q2 2025, and total client assets reaching $757 billion, a 30% increase year-over-year [6] - Investment Management reported pre-tax adjusted operating earnings of $51 million, with net inflows of $1.8 billion, surpassing $1 trillion in total assets managed and administered [7][11] - Employee Benefits saw a 15% increase in pre-tax adjusted operating earnings to $69 million, but faced a 13.8% decline in net revenues and a significant drop in adjusted operating margin [8][9] Operational Achievements - Voya surpassed $1 trillion in total assets managed and administered across Retirement and Investment Management, driven by successful asset gathering and favorable market conditions [11] - The company is investing $50 million in developing leave management solutions to adapt to evolving customer needs [12] Shareholder Returns - Voya returned $44 million to shareholders through dividends in Q2 2025, maintaining a capital-light, high free cash flow approach [13] Future Outlook - Management is focused on integrating the OneAmerica business, improving margins in Employee Benefits, and driving organic growth, without providing explicit forward guidance for revenue or profit [14][15]

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Voya Financial (VOYA) came out with quarterly earnings of $2.4 per share, beating the Zacks Consensus Estimate of $2.09 per share. This compares to earnings of $2.27 per share a year ago. These figures are adjusted for n ...

Core Viewpoint - Voya Financial (VOYA) is anticipated to report a year-over-year decline in earnings due to lower revenues, with the upcoming earnings report expected to significantly influence its stock price [1][2]. Earnings Expectations - The consensus estimate for Voya's quarterly earnings is $2.09 per share, reflecting a year-over-year decrease of 7.9% [3]. - Expected revenues for the quarter are $298.2 million, down 8% from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 1.9%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Voya is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.08% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [9][10]. - Voya's current Zacks Rank is 3 (Hold), complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, Voya exceeded the expected earnings of $1.59 per share, achieving actual earnings of $2.15, resulting in a surprise of +35.22% [13]. - Voya has beaten consensus EPS estimates in each of the last four quarters [14]. Conclusion - Voya does not appear to be a compelling candidate for an earnings beat based on current estimates and revisions, but other factors should also be considered by investors [17].

Core Insights - Voya Financial has partnered with Blue Owl to create innovative private market investment solutions for defined contribution retirement plans, enhancing investment options for participants [1][9] - The partnership will focus on designing collective investment trusts (CITs) that incorporate private market strategies from both firms, available through Voya's retirement platform [2][9] - This collaboration aims to deliver consistent income, manage downside risk, and expand access to alternative investments for retirement savers [3][4] Company Benefits - Voya is expected to open new revenue streams through private market investment products, potentially increasing its assets under management (AUM) by attracting new retirement plans and institutional clients [4][9] - The partnership allows Voya to broaden its distribution footprint and reach new client segments, particularly in retirement and insurance asset management [4][5] Future Collaboration - Voya and Blue Owl plan to extend their collaboration beyond retirement solutions into the insurance asset management space, leveraging each other's expertise in direct lending and fixed income strategies [5][9] Market Performance - Voya's shares have gained 6.6% year-to-date, outperforming the industry average [6]

Core Viewpoint - Voya Financial (VOYA) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. Voya's Earnings Outlook - For the fiscal year ending December 2025, Voya is expected to earn $8.35 per share, with a 0.4% increase in the Zacks Consensus Estimate over the past three months [8]. - The upgrade to Zacks Rank 2 reflects an improvement in Voya's underlying business, which is likely to drive the stock price higher [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions [9][10].

Company Overview - Voya Financial (VOYA) is based in New York and operates in the Finance sector, with a year-to-date share price change of -1.21% [3] - The company currently pays a dividend of $0.45 per share, resulting in a dividend yield of 2.71%, which is higher than the Insurance - Life Insurance industry's yield of 1.81% and the S&P 500's yield of 1.58% [3] Dividend Performance - Voya Financial's annualized dividend of $1.80 has increased by 5.9% from the previous year [4] - Over the past five years, the company has raised its dividend four times, achieving an average annual increase of 33.16% [4] - The current payout ratio is 22%, indicating that Voya paid out 22% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Voya Financial anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $8.36 per share, reflecting a year-over-year growth rate of 35.49% [5] Investment Appeal - Voya Financial is considered a compelling investment opportunity due to its attractive dividend and strong Zacks Rank of 2 (Buy) [7]

Core Viewpoint - The comparison between Voya Financial (VOYA) and Sun Life (SLF) indicates that VOYA is currently more attractive to value investors due to its stronger earnings estimate revisions and more favorable valuation metrics [3][7]. Valuation Metrics - Voya Financial has a forward P/E ratio of 8.13, while Sun Life has a forward P/E of 12.27, suggesting that VOYA is undervalued compared to SLF [5]. - The PEG ratio for VOYA is 0.57, indicating a better valuation relative to its expected earnings growth compared to SLF's PEG ratio of 1.75 [5]. - Voya's P/B ratio stands at 1.04, compared to Sun Life's P/B of 2.4, further supporting the notion that VOYA is more attractively priced [6]. Analyst Outlook - Voya Financial holds a Zacks Rank of 2 (Buy), reflecting a more favorable analyst outlook due to its impressive earnings estimate revision activity, while Sun Life has a Zacks Rank of 3 (Hold) [3][7]. Value Grades - Voya Financial has a Value grade of B, whereas Sun Life has a Value grade of C, indicating that VOYA is perceived as a better value investment [6].

Core Viewpoint - Voya Financial, Inc. (VOYA) is experiencing a short-term bullish trend, trading above its 50-day simple moving average, despite a 20.8% decline from its 52-week high. The company shows strong growth projections and attractive valuations, making it a stock worth holding. Group 1: Price Movement and Valuation - As of May 22, 2025, VOYA's share price was $66.72, down from a 52-week high of $84.30 [1] - The company has a market capitalization of $6.42 billion and an average trading volume of 1.07 million shares over the last three months [4] - VOYA shares are trading at a price-to-book multiple of 1.04X, significantly lower than the industry average of 1.9X, the Finance sector's 4.23X, and the S&P 500 Composite's 7.87X [5] Group 2: Growth Projections - The Zacks Consensus Estimate for VOYA's 2025 earnings per share indicates a year-over-year increase of 33.8%, with revenues expected to reach $1.18 billion, reflecting a 9.6% improvement [7] - For 2026, earnings per share and revenues are projected to increase by 19.5% and 11.3%, respectively, compared to 2025 estimates [9] - VOYA's earnings have grown by 12.2% over the past five years, outperforming the industry average of 7.8% [9] Group 3: Analyst Sentiment - Five out of six analysts covering VOYA have raised their estimates for 2025, with the Zacks Consensus Estimate for 2025 and 2026 increasing by 4.8% and 2.9%, respectively, in the last 30 days [10] Group 4: Segment Performance - VOYA's earnings are driven by strong performances in Wealth Solutions, Investment Management, and Health Solutions, which are characterized by higher growth and returns [14] - The Wealth Solutions segment is experiencing growth due to improved investment income and lower administrative expenses [15] - The Investment Management segment is expected to benefit from higher investment capital returns and improved fee revenues [16] Group 5: Capital Generation and Deployment - VOYA anticipates generating approximately $750 million of excess capital in 2025, with an expected increase of $100 million driven by strategic actions [18] - In Q1 2025, VOYA generated around $200 million of excess capital, returning $43 million to shareholders through dividends and retiring $400 million of senior notes [19] Group 6: Conclusion - Voya Financial is well-positioned for growth due to improved investment income, strategic partnerships, and effective capital deployment [20] - The company's solid growth projections, optimistic analyst sentiment, and attractive valuations further support its investment potential [21]

Summary of Voya Financial (VOYA) Update / Briefing May 19, 2025 Company Overview - Voya Financial manages approximately $342 billion in assets, including nearly $1 billion in closed-end fund assets under management (AUM) [4][5] - The closed-end fund lineup consists of five funds, all categorized under Morningstar's derivative income category [4] Funds Discussed - **Voya Global Advantage and Premium Opportunity Fund (IGA)** - **Voya Global Equity Dividend and Premium Opportunity Fund (IGD)** - **Voya Infrastructure, Industrials and Materials Fund (IDE)** Core Points and Arguments - IGA and IGD were launched in February 2005 and have a primary objective of high current income, with IGA also seeking capital appreciation [6] - IDE, launched in 2010, aims for total return through current income, capital gains, and capital appreciation [7] - As of April 2025, IGA and IGD had discounts of -3.5% and -6.8%, respectively, while IDE had a discount of -6.7% [9] - The funds have transitioned to monthly distributions as of May 2024, with annualized distribution rates increased to approximately 10% to 11% of NAV [11][12] - Over the trailing twelve months, IGA and IGD increased by 14.7% and 15.4% on an NAV basis, and 23.8% and 22.4% on a market basis, respectively [12] Performance Insights - IDE's performance for the trailing twelve months was 10.1% on an NAV basis, with a year-to-date increase of 3.7% [14] - The equity sleeves of IGA and IGD outperformed the MSCI World Value Index by approximately 670 basis points on a gross-to-fee basis [17] - IDE's equity sleeve outperformed its custom benchmark by about 30 basis points on a gross-to-fee basis [20] Investment Strategies - The funds employ a systematic call option overlay strategy to capture volatility risk premia and enhance total returns [22] - IGA and IGD engage in foreign currency hedging to minimize the impact of currency fluctuations [22] - The investment process maintains sector and region neutrality, targeting a dividend yield 15% higher than the benchmark while maintaining a lower beta of 0.85 to 0.9 [16] Market Outlook - The U.S. economy remains resilient despite trade tensions and tariff uncertainties, supported by a robust labor market and manageable inflation [28] - Political changes and trade uncertainties are expected to keep volatility high across asset classes [29] - The expectation is for lower asset class returns due to various macroeconomic factors, including the transition from above-trend growth in the U.S. and China's deleveraging [30][31] Additional Important Points - The funds' management team underwent changes, with key portfolio managers being replaced, but the investment strategy remains unchanged [7][39] - The call writing strategy is designed to support total returns and enhance stability, with adjustments made during periods of market volatility [38] This summary encapsulates the key points from the Voya Financial update, highlighting the company's strategies, performance, and market outlook.

Financial Performance - Total revenues for Q1 2025 were $1,969 million, a decrease of 4% compared to $2,051 million in Q1 2024[23]. - Net income available to Voya Financial, Inc.'s common shareholders for Q1 2025 was $139 million, down 41% from $234 million in Q1 2024[23]. - Basic earnings per share for Q1 2025 were $1.45, compared to $2.29 in Q1 2024, reflecting a 36.8% decline[23]. - Comprehensive income attributable to Voya Financial, Inc. for Q1 2025 was $437 million, compared to $182 million in Q1 2024, indicating a significant increase[25]. - The company reported a net income of $251 million for the three months ended March 31, 2024, compared to a net income of $156 million for the same period in 2025, reflecting a decrease of 38.0%[30]. - The total comprehensive income for the three months ended March 31, 2024, was $212 million, while it was $437 million for the same period in 2025, indicating a decrease of 51.5%[30]. - Cash flows from operating activities showed a net outflow of $179 million in Q1 2025, contrasting with a net inflow of $231 million in Q1 2024[34]. - The company reported an income before income taxes of $173 million for Q1 2025, down from $288 million in Q1 2024, representing a decline of approximately 40%[144]. - The effective tax rate for the three months ended March 31, 2025, was 12.7%, compared to (0.3)% for the same period in 2024[164][165]. Assets and Liabilities - Total assets as of March 31, 2025, were $163,950 million, slightly up from $163,889 million as of December 31, 2024[19]. - Total liabilities decreased to $157,589 million as of March 31, 2025, from $157,882 million as of December 31, 2024[21]. - The total amount of selling expenses will be disclosed in annual reporting periods as per the new requirements from ASU 2024-03[46]. - The total cash and cash equivalents, including cash in CIEs, decreased by $504 million in Q1 2025, compared to an increase of $58 million in Q1 2024[34]. - The total liability for future policy benefits as of March 31, 2025, is $9.214 billion, a decrease from $9.332 billion as of December 31, 2024[124]. Investment and Income - The company reported net investment income of $560 million for Q1 2025, an increase from $529 million in Q1 2024[23]. - The gross investment income for the three months ended March 31, 2025, was $582 million, compared to $546 million for the same period in 2024, showing an increase of 6.6%[74]. - The company recognized $1 million in net gains from fixed maturities available-for-sale for the three months ended March 31, 2025, compared to a loss of $20 million in 2024[75]. - The provision for expected credit losses increased to $32 million for the three months ended March 31, 2025, up from $27 million in the previous period, reflecting an increase of 18.5%[72]. - The company had $16 million of commercial mortgage loans in non-accrual status as of March 31, 2025, down from $26 million at the end of 2024, indicating a decrease of 38.5%[73]. Acquisitions and Growth - The Company acquired the full-service retirement plan business of OneAmerica Financial for approximately $50 million in cash and contingent consideration of up to $160 million payable in 2026[36]. - The Company acquired fixed maturities worth approximately $1.4 billion in the first quarter of 2025 related to the OneAmerica Financial acquisition[47]. - The Company assumed contract owner account balances of $3.8 billion and $20.6 billion of separate account liabilities as part of the OneAmerica Financial acquisition[130]. - The Value of Business Acquired (VOBA) increased significantly to $752 million as of March 31, 2025, compared to $376 million as of December 31, 2024, indicating a growth of 100%[120]. Shareholder Information - Voya Financial paid dividends of $43 million on common stock in Q1 2025, slightly up from $41 million in Q1 2024[34]. - The company declared dividends of $0.45 per share for the three months ended March 31, 2025, an increase of 12.5% from $0.40 per share in 2024[153]. - As of March 31, 2025, the total number of outstanding common shares was 96.2 million, a decrease from 102.9 million as of January 1, 2024[153]. - The company had an aggregate amount of $761 million remaining under its share repurchase authorization as of March 31, 2025[155]. - The company repurchased 2,445,386 shares of common stock for a total payment of $172 million during the three months ended March 31, 2024[156]. Regulatory and Compliance - The Company is in the process of finalizing disclosures required by ASU 2023-09 for annual disclosures in the Annual Report for the year ending December 31, 2025[43]. - The Company adopted ASU 2024-01 on January 1, 2025, with no impact on its financial condition or results of operations[42]. - The Company engages in securities lending, requiring initial collateral at a rate of at least 102% of the market value of loaned securities[51]. - The Company’s financial statements are prepared in accordance with U.S. GAAP and are unaudited, reflecting necessary adjustments for fair presentation[40]. Market Performance - The total unrealized capital losses for available-for-sale fixed maturities as of March 31, 2025, were $2,524 million, compared to $2,846 million on December 31, 2024, reflecting a reduction of 11.3%[56]. - The average duration of the Company's fixed maturities portfolio, including securities pledged, is between 6 and 6.5 years as of March 31, 2025[56]. - The Company reported total fixed maturities, including pledged securities, of $29.225 billion as of March 31, 2025, with $26.361 billion classified under Level 2[90]. - The fair value of the Company's total assets was $130.740 billion as of March 31, 2025, with $95.887 billion classified under Level 1[90]. Risk Management - The Company manages its commercial mortgage loan portfolio by lending only up to 75% of the estimated fair value of the underlying real estate[61]. - Loan-to-value (LTV) and debt service coverage (DSC) ratios are utilized to assess the risk and quality of mortgage loans[62]. - The Company does not intend to sell investments with unrealized losses, indicating a long-term holding strategy[57]. - The allowance for credit losses increased to $29 million as of March 31, 2025, up from $24 million at the end of 2024, indicating a rise of 20.8%[72]. Other Financial Metrics - Adjusted operating earnings before income taxes for Q1 2025 were $232 million, compared to $224 million in Q1 2024, reflecting a growth of approximately 3.6%[144]. - Adjusted operating revenues for Q1 2025 were $1,888 million, up from $1,863 million in Q1 2024, indicating an increase of about 1.3%[144]. - The total accumulated other comprehensive income (loss) as of March 31, 2025, was $(2,181) million, an improvement from $(2,469) million in 2024[159]. - The Company had total debt of $2.1 billion as of March 31, 2025, with compliance to its debt covenants[169].