Equitable Holdings Rises 4.7% Since Q3 Beat on Strong Asset Management

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Equitable Holdings, Inc. EQH shares have gained 4.7% since it reported third-quarter 2024 results on Nov. 4, 2024. Its strong third-quarter earnings benefited on the back of robust new business activity and favorable market conditions, triggering higher AUM/A and growth in spread income and fee-based revenues.

Improved performance in Group Retirement and Asset Management were major tailwinds along with rising investment income. However, the upside was partly offset by an elevated overall expense level.

EQH reported a third-quarter 2024 adjusted earnings per share (EPS) of $1.53, which outpaced the Zacks Consensus Estimate by a penny. The bottom line jumped from $1.15 per share a year ago.

Operating revenues of $3.78 billion improved 9.1% year over year in the third quarter but missed the consensus estimate by 2%.

Equitable Holdings, Inc. Price, Consensus and EPS Surprise

Equitable Holdings, Inc. price-consensus-eps-surprise-chart | Equitable Holdings, Inc. Quote

Q3 Performance Details

Policy charges and fee income amounted to $626 million, which rose from $599 million a year ago. Premiums of $313 million increased from the year-ago period’s $267 million. Net investment income of $1.31 billion climbed from $1.07 billion a year ago.

Total benefits and other deductions increased to $3.09 billion from $2.15 billion in the year-ago quarter. The year-over-year rise was due to higher commissions, distribution-related payments, and interest credited to policyholders’ account balances, partially offset by lower policyholders’ benefits, compensation and benefits and other operating costs. A negative change in market risk benefits and purchased market risk benefits in the year-ago quarter lowered the year-ago total expenses.

Pre-tax loss was $14 million against an income of $1.48 billion in the year-ago period.

Total AUM was $933.8 billion in the third quarter, up from $843.4 million at 2023-end. Total Assets Under Management/Administration or AUM/A jumped to $1,034 billion from $860 billion a year ago.

Q3 Segmental Update

Individual Retirement: Segment revenues were $944 million in the third quarter, up from $762 a year ago, beating the Zacks Consensus Estimate by 11.1%. The segment’s pre-tax income fell to $262 million from $277 million a year ago.

Group Retirement: The unit recorded revenues of $314 million in the quarter under review, which grew from $267 million and beat the consensus estimate by 7%. Its pre-tax income rose to $164 million from $132 million a year ago.

Asset Management: The segment witnessed revenues of $1.09 billion in the quarter under review, which grew from $1.03 billion and beat the consensus mark by 10.9%. The pre-tax income rose to $253 million from $220 million a year ago.

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