- Equitable Holdings recently reported third-quarter results showing a significant drop in revenue to US$1.45 billion and a net loss of US$1.31 billion, mainly due to a one-time impact from its life reinsurance transaction and higher mortality costs.
- The company also announced ongoing share repurchases, the acquisition of Stifel Independent Advisors, and continued dividend payments across both common and preferred shares, highlighting its commitment to capital return initiatives despite recent challenges.
- We’ll review how the earnings miss and impacts from the life reinsurance transaction could shift Equitable Holdings’ investment narrative going forward.
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Equitable Holdings Investment Narrative Recap
The core belief for Equitable Holdings shareholders centers on the company's ability to adapt legacy life and annuity business while accelerating growth in asset and wealth management. While the recent earnings miss and life reinsurance transaction introduced a temporary drag to headline results, the core catalyst, expanding fee-based revenue through asset gathering, remains intact in the near term. The most prominent risk continues to be shifting profitability as the product mix evolves, and the recent news is unlikely to materially change this risk right now.
The sizeable buyback announcement, which saw over 12.7 million shares repurchased this past quarter, stands out as especially relevant. This robust pace of capital return reinforces management’s conviction during a period of earnings volatility, and aligns with the ongoing focus on returning capital to shareholders while executing on asset growth priorities.
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Read the full narrative on Equitable Holdings (it's free!)
Equitable Holdings' outlook anticipates $18.3 billion in revenue and $2.3 billion in earnings by 2028. This projection reflects a 9.5% annual revenue growth rate and a substantial increase in earnings, up $1.87 billion from current earnings of $429 million.
Uncover how Equitable Holdings' forecasts yield a $64.50 fair value, a 44% upside to its current price.
Exploring Other Perspectives
Simply Wall St Community members estimate fair value for Equitable Holdings between US$64.50 and US$109.10, with 2 independent perspectives submitted. As product mix shifts towards lower-margin offerings, your outlook on future earnings stability could differ significantly from others, consider exploring additional viewpoints.
Explore 2 other fair value estimates on Equitable Holdings - why the stock might be worth over 2x more than the current price!
Build Your Own Equitable Holdings Narrative
Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.
- A great starting point for your Equitable Holdings research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
- Our free Equitable Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Equitable Holdings' overall financial health at a glance.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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