Equitable Holdings Earnings
Equitable Holdings, Inc. reported its fourth-quarter and full-year 2024 financial results, showcasing notable growth momentum and strategic execution. Despite certain challenges, especially within specific segments, the company's overall performance underscores its robust growth trajectory and commitment to long-term shareholder value enhancement. The following table provides an overview of key financial metrics that highlight Equitable's fiscal accomplishments for the period ended December 31, 2024.
Key Financial Metrics
| Financial Metric | Q4 2024 | Q4 2023 | YoY Change (%) | FY 2024 | FY 2023 | YoY Change (%) |
|---|---|---|---|---|---|---|
| Net Income (Loss) | $899 million | -$698 million | N/A | $1.3 billion | $1.3 billion | 0% |
| Earnings Per Share (EPS) | $2.76 | N/A | N/A | $3.78 | N/A | N/A |
| Non-GAAP Operating Earnings (EPS) | $1.57 | Not Specified | Not Specified | $5.93 | $4.60 | 29% |
The data reflects a year-over-year growth in non-GAAP operating earnings per share by 29%, reaching $5.93 for the full year of 2024. This signifies strong operational profitability, despite a stagnant growth in the net income, which remained constant at $1.3 billion compared to the previous fiscal year.
Equitable Holdings Results
For the fourth quarter of 2024, Equitable Holdings recorded net income of $899 million, a remarkable turnaround from a net loss of $698 million in the prior-year period. Earnings per share (EPS) stood notably at $2.76, demonstrating significant profitability for the quarter. The annual review shows consistent EPS, with a noteworthy 29% uptick in non-GAAP operating earnings. The company's fiscal stability and strategic management stand out amid a challenging landscape.
Revenue Breakdown
Revenue Performance Across Segments
The company's segmental revenue performance is outlined below, highlighting individual achievements and setbacks:
| Segment | Q4 2024 Net Flows | FY 2024 Net Flows |
|---|---|---|
| Individual Retirement | $1.7 billion | $7.2 billion |
| Group Retirement | -$134 million | -$104 million |
| Asset Management | -$4.8 billion | -$2.2 billion |
| Wealth Management | $776 million | $4.0 billion |
The Individual Retirement segment was a bright spot, registering $1.7 billion in net inflows for the quarter and $7.2 billion for the year, revealing substantial market demand. Conversely, the Asset Management segment faced challenges with net outflows recorded, a situation requiring strategic adjustments irrespective of favorable market conditions.
Key Developments
Throughout the quarter, Equitable Holdings has made notable strides in operational success and shareholder engagement:
- Recorded historic full-year net inflows of $7.1 billion in the Retirement segment.
- Achieved full-year cash generation of $1.5 billion, anticipating an increase to $1.6 - $1.7 billion by 2025.
- Returned $1.3 billion to shareholders through dividends and share repurchases, sustaining a payout ratio of 60-70%.
- Implemented cost-saving initiatives, realizing $100 million of a targeted $150 million in run-rate expense savings by 2027.
Comments from Company Officers
Mark Pearson, President and CEO of Equitable Holdings, praised the company's solid growth, tapping into the thriving U.S. retirement market and aligning strategically with future prospects. Pearson conveyed confidence in continued EPS growth and enhanced cash flow generation for 2025, reflecting the firm's resolute strategic positioning.
Dividends and Share Repurchases
Equitable's commitment to shareholder returns is evident in the substantial $1.3 billion returned through dividends and share buybacks, keeping in line with its target distribution of 60-70% of non-GAAP operating earnings.
Equitable Holdings Stock Forecast
Based on the company's robust financial performance and strategic advancements, analysts project a sustained stock price growth. With a noted stock price change of 0.394%, current trading at $53.46 per share and a market valuation of approximately $13.18 billion, projections estimate a high stock range of approximately $60, while anticipating lows in the $50 range. This forecast accounts for positive earnings momentum, strategic initiatives, and current market dynamics.
In summary, Equitable Holdings, Inc. concludes 2024 on a strong financial footing, reflecting its adeptness in executing growth strategies while addressing sector-specific challenges. Moving into 2025, expectations remain high for continued profitability and shareholder value enhancement, supported by favorable trends in the retirement market and strategic foresight.
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