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Equitable Holdings, Inc. (NYSE:EQH) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were mixed, with revenues of US$4.6b exceeding expectations, even as statutory earnings per share (EPS) fell badly short. Earnings were US$0.16 per share, -87% short of analyst expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Equitable Holdings after the latest results.
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Following last week's earnings report, Equitable Holdings' eight analysts are forecasting 2025 revenues to be US$15.3b, approximately in line with the last 12 months. Per-share earnings are expected to jump 52% to US$5.94. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$15.7b and earnings per share (EPS) of US$6.08 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.
View our latest analysis for Equitable Holdings
The analysts made no major changes to their price target of US$62.40, suggesting the downgrades are not expected to have a long-term impact on Equitable Holdings' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Equitable Holdings analyst has a price target of US$77.00 per share, while the most pessimistic values it at US$55.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Equitable Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.6% growth on an annualised basis. This is compared to a historical growth rate of 2.2% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that Equitable Holdings is also expected to grow slower than other industry participants.