Equitable Holdings Q3 adjusted EPS jumps 44%, beats estimates

Overview

• US financial services firm's Q3 adjusted EPS rose 44% yr/yr, beating analyst expectations

• Net income was $1.1 bln, reversing a loss in the prior year

• Company returned $320 mln to shareholders; Corebridge merger remains on track for year-end close

Outlook

• Company maintains 2026 payout ratio target of 60-70%

• Merger with Corebridge Financial expected to close by year-end 2026, subject to approvals

Result Drivers

• RETIREMENT SEGMENT - Operating earnings rose due to higher fee-based revenue, growth in net interest margin, and benefit from actuarial assumption update

• ASSET MANAGEMENT - Net inflows of $6.6 bln driven by institutional mandates, but operating earnings fell due to lower fee rate and higher expenses

• WEALTH MANAGEMENT - Operating earnings increased on growth in client assets and higher advisor productivity

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified investment services peer group is "hold."

• Wall Street's median 12-month price target for Equitable Holdings, Inc. is $65.00, about 20.7% above its October 30 closing price of $53.85

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)