Equitable Holdings Q1 Earnings Miss Estimates, Stock Up 3.5%

Equitable Holdings, Inc. EQH shares have risen 3.5% since the company reported first-quarter 2025 results on April 29. However, the quarterly results were hurt by an increase in policyholders’ benefits and a change in market risk benefits and purchased market risk benefits. Nevertheless, the downside was partly offset by revenue growth across its key segments, particularly individual retirements and group retirements.EQH reported first-quarter 2025 adjusted earnings per share (EPS) of $1.35, which fell short of the Zacks Consensus Estimate by 9.4%. The bottom line declined 5.6% year over year. Operating revenues rose 3.8% year over year to $3.8 billion. The top line missed the consensus estimate by 5.1%.Equitable Holdings, Inc. Price, Consensus and EPS Surprise Equitable Holdings, Inc. price-consensus-eps-surprise-chart | Equitable Holdings, Inc. QuoteEQH’s Q1 Performance DetailsPolicy charges and fee income of $636 million grew 3.5% year over year. Premiums improved 6.7% year over year to $304 million. Net investment income was $1.2 billion, which rose 3.1% year over year. Total benefits and other deductions increased 118.9% year over year to $4.4 billion. Other operating costs and expenses rose 72.1% year over year. The pre-tax income of Equitable Holdings totaled $174 million, highlighting a decline of 20.5% year over year. Total AUM was $904 billion at the first-quarter end, down 1.6% year over year. Total Assets Under Management/Administration or AUM/A advanced 3.2% year over year to $1 trillion. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)Equitable Holdings’ Q1 Segmental UpdateIndividual Retirement: The unit recorded revenues of $997 million, which rose 18.7% year over year but were lower than the Zacks Consensus Estimate of $1 billion. Pre-tax income declined 8.3% year over year to $255 million.Group Retirement: The segment’s revenues climbed 8.6% year over year to $316 million and beat the consensus mark of $305.9 million. Pre-tax income of $153 million improved 5.5% year over year. Asset Management: The segment posted revenues of $1.1 billion, which declined 0.5% year over year and missed the consensus mark of $1.2 billion. Pre-tax income soared 10.1% year over year to $273 million in the first quarter. Protection Solutions: The unit’s revenues grew to $826 million from $824 million in the prior-year quarter. However, the metric lagged the Zacks Consensus Estimate of $869.5 million. Pre-tax loss was $19 million against income of $51 million a year ago. Wealth Management: Segment revenues were $463 million, which advanced 9.4% year over year but were lower than the consensus mark of $481.4 million. Yet, pre-tax income rose 5.2% year over year to $61 million. Legacy: The segment witnessed revenues of $120 million, which decreased 7% year over year and also missed the consensus mark of $158.4 million. Pre-tax income declined 28.2% year over year to $28 million.EQH’s Financial Update (as of March 31, 2025)Equitable Holdings exited the first quarter with total investments and cash and cash equivalents of $127.1 billion, which rose from $123.4 billion at the 2024-end level. Total assets of $287.4 billion decreased from $295.7 billion at 2024-end.Long-term debt amounted to $4.3 billion, up 13% from the figure as of Dec. 31, 2024.Total equity of $4.2 billion rose 22.8% from the 2024-end level.Equitable Holdings’ Capital ReturnedEquitable Holdings returned $335 million ($74 million cash dividend and $261 million repurchases) in the first quarter. The company has a payout ratio target of 60-70% of non-GAAP operating earnings during the 2023-2027 period.Equitable Holdings’ Future ViewThe company earlier aimed to generate cash in the range of $1.6-$1.7 billion for 2025.  It also aimed for $2 billion of annual cash generation over the 2023-2027 period. Non-GAAP operating EPS CAGR earlier expected in the band of 12-15% in the same time frame.EQH’s Zacks Rank & Key PicksEQH currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the broader Finance space are Root Inc. ROOT, EverQuote Inc. EVER and Heritage Insurance Holdings Inc. HRTG, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Root’s current-year earnings of $1.11 per share has witnessed one upward revision in the past week against none in the opposite direction. Root beat earnings estimates in each of the trailing four quarters, with the average surprise being 208.9%. The consensus estimate for current-year revenues is pegged at $1.4 billion, implying 17.3% year-over-year growth.The Zacks Consensus Estimate for EverQuote’s current-year earnings is pegged at $1.17 per share. EverQuote beat earnings estimates in each of the trailing four quarters, with the average surprise being 122.6%. The consensus estimate for current-year revenues is pegged at $640.3 million, suggesting 28% year-over-year growth.The Zacks Consensus Estimate for Heritage Insurance’s current-year earnings of $3.25 per share has witnessed two upward revisions in the past week against no movement in the opposite direction. Heritage Insurance beat earnings estimates in each of the trailing four quarters, with the average surprise being 363.2%. The consensus estimate for current-year revenues is pegged at $854.9 million, calling for 4.6% year-over-year growth.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report EverQuote, Inc. (EVER): Free Stock Analysis Report Heritage Insurance Holdings, Inc. (HRTG): Free Stock Analysis Report Equitable Holdings, Inc. (EQH): Free Stock Analysis Report Root, Inc. (ROOT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks