Equitable Holdings Q1 Earnings Miss Estimates, Stock Up 3.5%

Core Viewpoint - Equitable Holdings, Inc. (EQH) experienced a 3.5% increase in share price following the release of its first-quarter 2025 results, despite facing challenges from increased policyholder benefits and changes in market risk benefits [1] Financial Performance - EQH reported adjusted earnings per share (EPS) of $1.35, which was 9.4% below the Zacks Consensus Estimate, and a 5.6% decline year over year [2] - Operating revenues increased by 3.8% year over year to $3.8 billion, but this also fell short of the consensus estimate by 5.1% [2] - Policy charges and fee income grew by 3.5% year over year to $636 million, while premiums improved by 6.7% to $304 million [3] - Net investment income rose by 3.1% year over year to $1.2 billion, but total benefits and other deductions surged by 118.9% to $4.4 billion [3] Segment Performance - Individual Retirement segment revenues increased by 18.7% year over year to $997 million, although it was below the consensus estimate of $1 billion [4] - Group Retirement revenues climbed by 8.6% year over year to $316 million, surpassing the consensus mark of $305.9 million [5] - Asset Management revenues declined by 0.5% year over year to $1.1 billion, missing the consensus estimate of $1.2 billion [5] - Protection Solutions revenues grew slightly to $826 million but were below the consensus estimate of $869.5 million, resulting in a pre-tax loss of $19 million [6] - Wealth Management revenues advanced by 9.4% year over year to $463 million, yet fell short of the consensus mark of $481.4 million [6] - Legacy segment revenues decreased by 7% year over year to $120 million, missing the consensus estimate of $158.4 million [7] Financial Position - As of March 31, 2025, total investments and cash equivalents amounted to $127.1 billion, up from $123.4 billion at the end of 2024 [8] - Total assets decreased to $287.4 billion from $295.7 billion at the end of 2024 [8] - Long-term debt increased by 13% to $4.3 billion, while total equity rose by 22.8% to $4.2 billion [8] Capital Return - EQH returned $335 million to shareholders in the first quarter, consisting of $74 million in cash dividends and $261 million in share repurchases [9] - The company has set a payout ratio target of 60-70% of non-GAAP operating earnings for the period from 2023 to 2027 [9] Future Outlook - The company aims to generate cash in the range of $1.6-$1.7 billion for 2025 and $2 billion annually over the 2023-2027 period [10] - Non-GAAP operating EPS is expected to grow at a compound annual growth rate (CAGR) of 12-15% during the same timeframe [10]