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
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Beat | $2.13 | $1.86 (14 Analysts) |
Q3 EPS | $4.05 | ||
Q3 Net Income | $1.12 bln | ||
Q3 Adjusted Operating Earnings | $595 mln | ||
Q3 Assets Under Management | $1.16 trln |
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.)