Investing.com -- Shares of Voya Financial (NYSE: NYSE:VOYA) climbed 5% as the company reported robust fourth-quarter earnings that surpassed Wall Street estimates. The financial services firm announced its Q4 earnings per share (EPS) at $1.40, outperforming the analyst consensus of $1.27. Revenue for the quarter also exceeded expectations, coming in at $2.01 billion against the forecasted $1.88 billion.
Voya Financial's positive performance was driven by a combination of strong results in its Wealth Solutions and Investment Management segments, despite being partially offset by higher loss ratios in Health Solutions. The company highlighted its successful capital return to shareholders, totaling $800 million through share repurchases and dividends in 2024, and the completion of OneAmerica Financial's retirement plan business acquisition on January 2, 2025. Additionally, Voya invested in Sconset Re to enhance its position in third-party insurance asset management.
The company's CEO, Heather Lavallee, expressed satisfaction with the growth and margin expansion in Wealth Solutions and Investment Management. However, she noted the challenges faced in Health Solutions, particularly in the Stop Loss business. Lavallee remains optimistic about improved profitability in this area for 2025.
Comparing year-over-year figures, Voya Financial's Q4 net income available to common shareholders was $93 million, or $0.94 per diluted share, a decrease from $118 million, or $1.10 per diluted share, in the fourth quarter of 2023. The full-year net income for 2024 was $626 million, or $6.17 per diluted share, up from $589 million, or $5.42 per diluted share, in 2023.
Analysts have weighed in on the financial results. KBW analyst Ryan Krueger noted that the operating EPS beat consensus and KBW's estimates, with Stop Loss performing better than anticipated. "Stop-loss was better than feared," Krueger commented, highlighting that the 2025 outlook is less favorable with expected earnings per share in the high $7 range compared to the consensus of $8.87.
BofA Securities analyst Joshua Shanker pointed out that the fourth-quarter beat ended the uncertainty around Stop Loss, but projected a slowdown in buybacks for 2025, which could impact future earnings per share forecasts.
Voya Financial's full-year 2024 results reflect a company navigating challenges and capitalizing on growth opportunities, with a focus on long-term shareholder value and customer outcomes. The company's strategic investments and business segment performance have contributed to its fourth-quarter success, leading to a positive market reaction as reflected in the stock's upward movement.
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