Equitable Holdings Q4 adjusted EPS misses estimates

Overview

• Financial services firm's Q4 adjusted EPS was $1.73, missing analyst expectations

• Company reported Q4 net income of $215 million

• Assets under management rose 10% yr/yr to $1.1 trillion

Outlook

• Equitable Holdings expects 2026 cash generation to increase to approximately $1.8 bln

• Company targets 12-15% EPS CAGR for 2023-2027

• Equitable Holdings aims to reach $2 bln cash generation by 2027

Result Drivers

• REINSURANCE TRANSACTION - Executed reinsurance deal with RGA, freeing $2 bln capital and reducing mortality exposure by 75%

• WEALTH MANAGEMENT GROWTH - Wealth Management advisory net inflows of $8.4 bln for the year, with total assets under administration reaching $122 bln

• RETIREMENT SEGMENT GROWTH - Retirement segment saw net inflows of $5.9 bln and first year premiums up 11%

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 $61.50, about 37.6% above its February 3 closing price of $44.68

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

Press Release: ID:nBw1cfvba

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