Equitable Holdings, Inc. (NYSE: EQH) Reports Robust Q3 2024 Results

Equitable Holdings, Inc. has reported a significant increase in its third-quarter non-GAAP operating earnings, showcasing a 34% rise year-over-year to $501 million or $1.53 per share. The adjusted non-GAAP EPS reached $1.59, surpassing expectations with a 22% increase.

Key Takeaways

• Non-GAAP operating earnings rose 34% YoY to $501 million ($1.53/share).
• Adjusted non-GAAP EPS grew 22% to $1.59, exceeding growth guidance.
• Assets under management surpassed $1 trillion, marking a 20% YoY increase.
• $330 million returned to shareholders at a 65% payout ratio.
• The retirement segment experienced a 25% increase in sales YoY with net inflows of $1.7 billion.
• Wealth Management recorded record advisory net inflows of $1.9 billion.
• CEO Mark Pearson noted strong demographic trends and strategic partnerships.

Company Outlook

• Full-year cash generation anticipated at $1.4 billion to $1.5 billion.
• Targeting $2 billion cash generation by 2027.
• 33% operating margin expected by 2025, with potential for expansion.

Competitive Highlights

Bearish Points

• Increased competition in RILA sector acknowledged.
• Surrender activity in the Individual Retirement segment increased.

Bullish Points

• Strong growth in Individual Retirement, particularly in the RILA market.
• Net interest margin (NIM) rose by 5% YoY in Individual Retirement.
• Positive market conditions for retirement products noted.

Conclusion

Equitable Holdings demonstrated robust financial performance in Q3 2024, reflecting substantial gains in operating earnings and assets under management stemming from strategic focuses on retirement solutions and asset management. Despite facing challenges like increased competition and surrender activities, the company is confident in its market position and growth strategy, indicating a clear path towards achieving future financial targets.

InvestingPro Insights

Equitable Holdings boasts a $15.44 billion market capitalization and has increased its dividend for six consecutive years, providing a 2.16% yield attractive to income-focused investors. The company is also buying back shares, reinforcing its commitment to shareholder returns. With liquid assets surpassing short-term obligations, Equitable Holdings is well-positioned to pursue growth opportunities.