Equitable Holdings Q1 adjusted EPS slightly beats estimates on retirement segment strength

Overview

• US financial services firm's Q1 adjusted EPS beat analyst expectations, net income rose yr/yr

• Company announced, on march 26th, all-stock merger with Corebridge Financial, creating a diversified financial institution

• Returned $223 mln to shareholders via dividends and buybacks in Q1

Outlook

• Equitable Holdings maintains 2026 guidance of $1.8 bln cash generation and over 15% EPS growth

• Company remains committed to 60-70% payout ratio target for 2026

• Merger with Corebridge expected to be immediately accretive to EPS and cash generation

Result Drivers

• RETIREMENT INFLOWS - Retirement segment reported $1.3 bln in net inflows and a 10% increase in first-year premiums, with higher fee-based revenue and a lower tax rate supporting operating earnings

• ASSET MANAGEMENT OUTFLOWS - Asset Management segment saw $7.1 bln in net outflows, mainly from active equities, but operating earnings rose due to growth in base fees and a higher ownership percentage of AB

• WEALTH MANAGEMENT GROWTH - Wealth Management segment posted $2.0 bln in advisory net inflows and a 28% increase in assets under administration, supported by acquired assets from the Stifel transaction and higher advisor productivity

Company press release: ID:nBw27mGhVa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", no "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 $58.00, about 37.5% above its May 1 closing price of $42.17

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 6 three months ago

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