Equitable Holdings Q2 adjusted EPS beats estimates as AUM rises

Overview

• US financial services group's Q2 adjusted EPS rose, beating analyst expectations

• Company posted Q2 net loss of $453 mln

• Assets under management rose 10% yr/yr to $1.2 trillion

Outlook

• Equitable Holdings expects Corebridge merger to close by year-end 2026

• Company maintains 2026 payout ratio target of 60-70%

• Merger expected to be immediately accretive to EPS and cash generation, with 10%+ accretion by year-end 2028

Result Drivers

• NET INFLOWS - Co said positive net inflows in Retirement, Wealth Management, and Asset Management segments contributed to growth

• FAVORABLE MARKETS - Co attributed record assets under management to positive flows and favorable market conditions

• FEE-BASED REVENUE - Retirement segment operating earnings rose mainly due to higher fee-based revenue and a lower tax rate

Company press release: ID:nBw9JH9tda

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 $60.00, about 25% above its August 3 closing price of $48.00

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

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)