Equitable Holdings reports significant Q3 growth and shareholder returns

Equitable Holdings Inc (NYSE:) announced Q3 2023 results showing substantial growth compared to the same period in 2022. The company reported a net income of $1.1 billion ($3.02/share), non-GAAP operating earnings of $413 million ($1.15/share), and adjusted non-GAAP earnings of $468 million ($1.30/share).

The firm’s assets under management/administration (AUM/A) rose 10% year-on-year to $860 billion, driven by higher markets. The Retirement and Wealth Management segments recorded combined net inflows of $3.0 billion, with the Wealth Management segment reporting organic growth. The Individual Retirement segment experienced a record quarter with first year premiums increasing by 28%.

On the other hand, the Asset Management segment witnessed net outflows of $1.9 billion, while active net flows remained nearly flat. The Retail channel reported net inflows of $1.6 billion, and advisor productivity increased by 2%.

In line with its payout ratio target of 60-70% of non-GAAP operating earnings, Equitable Holdings returned $315 million to shareholders, including $238 million via share repurchases. The company held cash and liquid assets of $2.0 billion, which is above its minimum target of $500 million, demonstrating a focus on maximizing financial flexibility.

Equitable Holdings is on track for its $1.3 billion 2023 guidance with predictable cash generation of $1.0 billion year-to-date.

Other notable company news includes the appointment of Erik Bass as Head of Investor Relations for Equitable Holdings and participation in the 2023 KBW Insurance Conference.

InvestingPro Insights

1. While EQH has shown strong performance in recent quarters, 10 analysts on InvestingPro have revised their earnings downwards for the upcoming period. This suggests a potential need for caution among investors, despite the company’s positive trajectory.

2. Despite a declining revenue trend, analysts predict that EQH will remain profitable this year, aligning with the firm’s reported net income of $1.1 billion.

For more comprehensive insights and additional tips, consider exploring the InvestingPro platform. With over 20 additional tips available for EQH, InvestingPro offers a rich resource for informed investment decisions.

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