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Voya Financial (VOYA) Tops Q4 EPS by 16c; Enters $500M Stock Buyback

February 13, 2018 4:22 PM

Voya Financial (NYSE: VOYA) reported Q4 EPS of $0.87, $0.16 better than the analyst estimate of $0.71.

“We generated solid earnings growth in both the fourth quarter and full year of 2017,” said Rodney O. Martin, Jr., chairman and chief executive officer, Voya Financial. “For example, during the fourth quarter, we achieved record earnings and strong sales in our Retirement business; generated $836 million in Investment Management-sourced net inflows; and increased in-force premiums in Employee Benefits.

"Our capital position continues to be strong. During the fourth quarter, we entered into a $500 million accelerated share repurchase agreement, and we have received authorization from the board of directors to repurchase an additional $500 million of common stock, bringing our current authorization to just over $1 billion. While we incurred a one-time charge related to the reduction of our deferred tax assets, they remain a key source of value for Voya\'s shareholders. As a result of tax reform, we expect our effective tax rate for adjusted operating earnings to decline from 32% to 18-to-20%. Lower rates will increase adjusted operating earnings per share and we believe they will also support overall economic growth.

"As we begin 2018, we have a number of initiatives and priorities in place to make Voya a simpler, more valuable company that is well positioned for continued growth. Through the previously announced agreement to sell the majority of our CBVA segment and Annuities business, we will both significantly reduce risk and put Voya in a strong position to expand upon the growth that we\'ve achieved. We are actively engaged in the important work needed to complete the transaction as well as to build upon the many financial, operational and cultural accomplishments that we've achieved over the past several years.

"We began this year with three significant distinctions that speak to our strong culture as well as the character of our brand. In our first year of eligibility, Voya was named one of the top securities and asset management firms on Fortune magazine\'s list of the 2018 World\'s Most Admired Companies. Also last month, we were included in the 2018 Bloomberg Gender-Equality Index and, on Monday, we were named one of the 2018 World’s Most Ethical Companies by the Ethisphere Institute for the fifth consecutive year. We look forward to building upon these achievements and continuing to deliver even greater value for all of our stakeholders," added Martin.

For earnings history and earnings-related data on Voya Financial (VOYA) click here.


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