Voya Financial, Inc. Just Recorded A 9.4% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a good week for Voya Financial, Inc. (NYSE:VOYA) shareholders, because the company has just released its latest yearly results, and the shares gained 7.8% to US$74.80. Voya Financial missed revenue estimates by 3.9%, with sales of US$5.9b, although statutory earnings per share (EPS) of US$4.30 beat expectations, coming in 9.4% ahead of analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Voya Financial after the latest results.

Check out our latest analysis for Voya Financial

Taking into account the latest results, the most recent consensus for Voya Financial from twelve analysts is for revenues of US$6.95b in 2023 which, if met, would be a meaningful 17% increase on its sales over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of US$6.70b and earnings per share (EPS) of US$7.48 in 2023. What's really interesting is that while the consensus made a slight bump in revenue estimates, it no longer provides an earnings per share estimate, suggesting that revenues are now the focus of the business after this latest result.

We'd also point out that thatthe analysts have made no major changes to their price target of US$83.13. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Voya Financial, with the most bullish analyst valuing it at US$88.00 and the most bearish at US$70.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Voya Financial is forecast to grow faster in the future than it has in the past, with revenues expected to display 17% annualised growth until the end of 2023. If achieved, this would be a much better result than the 8.4% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.7% annually. So it looks like Voya Financial is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The highlight for us was that the analysts increased their revenue forecasts for Voya Financial next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

At least one of Voya Financial's twelve analysts has provided estimates out to 2025, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Voya Financial that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.