Voya Financial, Inc. (NYSE:VOYA), a leading American financial services company currently trading at $68.35, disclosed preliminary financial results for the fourth quarter ended December 31, 2024, which fell short of its long-term expectations. According to InvestingPro data, eight analysts have recently revised their earnings estimates downward for the upcoming period, suggesting growing concerns about near-term performance.
The company's alternative investment income and prepayment fees for the quarter are estimated to be between $40 million and $48 million before taxes, which is $8 million to $16 million below the company's long-term projections.
The New York-based life insurance company, which operates under the state of Delaware's jurisdiction, noted that the preliminary figures include alternative investment income and prepayment fees from its general account, as well as investment capital returns in its Investment Management segment.
Despite recent challenges, InvestingPro analysis shows the company maintains strong fundamentals with a healthy P/E ratio of 10.59 and impressive revenue growth of 10.94% over the last twelve months. InvestingPro's Fair Value analysis suggests the stock may be slightly undervalued at current levels. The company's long-term expectation for alternative investments is a 9% annual return, and for prepayment fees, a 10-basis-point annual contribution to yield.
It is important to note that these preliminary results are subject to change as the company has not yet completed its financial closing procedures for the quarter and year ended December 31, 2024. Furthermore, the figures have not been audited or reviewed by Ernst & Young LLP, Voya Financial's independent registered public accounting firm, which has not expressed an opinion on these preliminary results.
Voya Financial cautions prospective investors to not rely solely on this preliminary data and emphasizes that these figures should not be considered a substitute for full financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). The actual results may differ materially from these preliminary estimates, and they may not necessarily be indicative of future performance.
The company is expected to release its full quarterly earnings report and financial supplement on February 4, 2025. For investors seeking deeper insights, InvestingPro offers comprehensive analysis through its Pro Research Report, available for Voya Financial and 1,400+ other US stocks, providing essential metrics and expert analysis for informed investment decisions. The platform's financial health score of 2.74 (rated as GOOD) indicates robust overall company performance despite recent headwinds.
RBC (TSX:RY) Capital Markets maintained an Outperform rating for Voya Financial, despite revising the company's stock target. This decision was based on the company's high free cash flow and potential for organic growth. However, the company's earnings and revenue have been impacted by a challenging period, including the expected departure of Rob Grubka, head of the health and wealth business.
Despite these challenges, Voya Financial reported strong revenue growth of 10.94% over the past twelve months. The company's annual revenue reached $7.86 billion, maintaining a competitive P/E ratio of 10.59. Voya Financial remains committed to providing solutions that meet the health and wealth needs of its clients in the workplace, serving over 15.2 million individual, workplace, and institutional clients.
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