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Today, Voya Financial (NYSE:VOYA), Inc., a New York-based life insurance company, disclosed in a regulatory filing with the SEC that its alternative investment income for the first quarter of 2025 is estimated to be significantly below the company's long-term expectations. The preliminary figures, which are not yet final and have not been reviewed by the company's independent auditors, suggest that the pre-tax alternative investment income will be between $24 million and $34 million. This amount falls short of the long-term forecast by approximately $15 million to $25 million, even before accounting for variable and incentive compensation. The news comes as Voya's stock has experienced significant pressure, with InvestingPro data showing a 21.4% decline in the past week alone, though the company maintains strong fundamentals with a P/E ratio of 9.45 and a healthy 3.3% dividend yield.
The company's long-term expectation for alternative investments, which includes income in its general account and investment capital returns in its Investment Management segment, is an annual return of 9%. However, the actual results for the quarter ended March 31, 2025, could differ materially from these preliminary figures, and investors are cautioned not to rely heavily on this information. According to InvestingPro analysis, Voya maintains strong financial health with liquid assets exceeding short-term obligations and has consistently maintained dividend payments for 13 consecutive years.
Voya Financial's full quarterly earnings release and financial supplement are scheduled to be made available on May 6, 2025. The company has indicated that it is still in the process of completing its financial closing procedures for the first quarter, and it is possible that adjustments may be identified that could materially impact the preliminary results. For investors seeking deeper insights, InvestingPro offers comprehensive analysis including Fair Value estimates and 12 additional ProTips, available through the Pro Research Report, part of the extensive coverage of over 1,400 US stocks.
The information provided by Voya Financial is based on a press release statement and is intended to inform the market in accordance with Regulation FD. It has not been filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor is it to be incorporated by reference in any filing under the Securities Act of 1933, except as explicitly stated in such a filing.
In other recent news, Voya Financial reported strong fourth-quarter earnings, with earnings per share (EPS) of $1.40, surpassing Wall Street's estimate of $1.27. The company's revenue also exceeded expectations, reaching $2.01 billion compared to the forecasted $1.88 billion. Voya's performance was bolstered by its Wealth Solutions and Investment Management segments, despite challenges in the Health Solutions sector. The company successfully returned $800 million to shareholders through share repurchases and dividends in 2024. Additionally, Voya completed the acquisition of OneAmerica Financial's retirement plan business and invested in Sconset Re to enhance its third-party insurance asset management capabilities.
In other developments, Voya Financial launched the MyCompass Target (NYSE:TGT) Date Blend Series, expanding its retirement solutions. This new offering is aimed at maximizing wealth early in participants' careers while reducing risk as they near retirement. Analyst opinions on Voya Financial's stock have varied, with BofA Securities downgrading it to Underperform and lowering the price target to $71 due to concerns over earnings projections. Conversely, Morgan Stanley (NYSE:MS) upgraded the stock to Overweight, raising the price target to $87, citing confidence in Voya's growth potential. Meanwhile, Barclays (LON:BARC) downgraded the stock to Equal Weight with a price target of $75, expressing concerns about earnings power and strategic spending.
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