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

Core Viewpoint - Equitable Holdings, Inc. (EQH) reported strong third-quarter 2024 results, with a 4.7% increase in shares following the earnings announcement, driven by robust new business activity and favorable market conditions, despite elevated overall expenses [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q3 2024 were $1.53, exceeding the Zacks Consensus Estimate by $0.01, and up from $1.15 a year ago [2] - Operating revenues reached $3.78 billion, a 9.1% year-over-year increase, although it fell short of the consensus estimate by 2% [2] - Policy charges and fee income rose to $626 million from $599 million year-over-year, while premiums increased to $313 million from $267 million [3] - Net investment income climbed to $1.31 billion from $1.07 billion year-over-year [3] Expense and Deductions - Total benefits and other deductions increased to $3.09 billion from $2.15 billion in the prior year, primarily due to higher commissions and distribution-related payments [4] - A pre-tax loss of $14 million was reported, contrasting with a pre-tax income of $1.48 billion in the same quarter last year [5] Assets Under Management - Total AUM was $933.8 billion in Q3 2024, up from $843.4 billion at the end of 2023, while total AUM/A increased to $1,034 billion from $860 billion year-over-year [5] Segment Performance - Individual Retirement segment revenues were $944 million, up from $762 million, beating the consensus estimate by 11.1%, though pre-tax income fell to $262 million from $277 million [6] - Group Retirement revenues grew to $314 million from $267 million, with pre-tax income rising to $164 million from $132 million [6] - Asset Management revenues increased to $1.09 billion from $1.03 billion, with pre-tax income rising to $253 million from $220 million [7] - Protection Solutions revenues were $839 million, up from $822 million, but missed the consensus estimate by 1.4%, with pre-tax income increasing to $56 million from $41 million [7] - Wealth Management revenues reached $450 million, up from $390 million, but slightly missed the consensus estimate [8] Financial Position - Total investments and cash equivalents were $123.83 billion, up from $110.4 billion at the end of 2023, while total assets increased to $298.99 billion from $276.8 billion [9] - Long-term debt was $3.83 billion, a slight increase from $3.82 billion at the end of 2023 [10] - Total equity rose to $3.22 billion from $2.65 billion at the end of 2023 [11] Capital Return - The company returned $330 million to shareholders in Q3 2024, consisting of $76 million in cash dividends and $254 million in share repurchases [12] Future Outlook - EQH expects cash generation for 2024 to be at the upper limit of the guided range of $1.4-$1.5 billion, targeting $2 billion in annual cash generation by 2027, with a projected non-GAAP operating EPS CAGR of 12-15% through 2027 [13]