Equitable Holdings, Inc.’s EQH shares have gained 3.4% since it reported fourth-quarter 2024 results on Feb. 5, 2025. However, the quarterly results were hurt by pressure on investment results. Nevertheless, the downside was partly offset by revenue growth across its key segments, particularly Asset Management and Wealth Management. Higher assets under management (AUM) and improved fee income coupled with lower benefits and deductions also contributed to the upside.
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EQH reported fourth-quarter 2024 adjusted earnings per share (EPS) of $1.57, which fell short of the Zacks Consensus Estimate by 2.5%. The bottom line advanced 18% year over year.
Operating revenues rose 11.3% year over year to $4 billion. The top line missed the consensus estimate by 1%.
EQH’s Q4 Performance Details
Policy charges and fee income of $638 million grew 6.5% year over year. Premiums improved 3.9% year over year to $292 million. Net investment income was $1.2 billion, which dipped 1.7% year over year.
Total benefits and other deductions declined 18.9% year over year to $2.4 billion. A negative change in market risk benefits and purchased market risk benefits in the year-ago quarter significantly lowered the year-ago total expenses. Other operating costs and expenses decreased 8.2% year over year.
Equitable Holdings, Inc. Price, Consensus and EPS Surprise
Equitable Holdings, Inc. Price, Consensus and EPS Surprise
Equitable Holdings, Inc. price-consensus-eps-surprise-chart | Equitable Holdings, Inc. Quote
Pre-tax income of Equitable Holdings totaled $1.2 billion against the prior-year quarter’s loss of $817 million.
Total AUM was $918.8 billion at the fourth-quarter end, up 8.9% year over year. Total Assets Under Management/Administration or AUM/A advanced 10% year over year to $1 trillion.
Equitable Holdings’ Q4 Segmental Update
Individual Retirement: The unit recorded revenues of $978 million, which rose 24.9% year over year and were higher than the Zacks Consensus Estimate of $949.5 million. Pre-tax income advanced 7.9% year over year to $274 million.
Group Retirement: The segment’s revenues climbed 22% year over year to $305 million and beat the consensus mark of $303.4 million. Pre-tax income of $151 million improved 29.1% year over year.
Asset Management: The segment posted revenues of $1.25 billion, which advanced 16.3% year over year and outpaced the consensus mark of $1.15 billion. Pre-tax income soared 44.4% year over year to $345 million in the fourth quarter.
Protection Solutions: The unit’s revenues grew 3% year over year to $831 million. However, the metric lagged the Zacks Consensus Estimate of $870.3 million. Pre-tax income was $35 million, up 6.1% year over year.
Wealth Management: Segment revenues were $481 million, which advanced 17.9% year over year and were higher than the consensus mark of $470.8 million. Yet, pre-tax income dipped 1.7% year over year to $59 million.
Legacy: The segment witnessed revenues of $129 million, which increased 2.4% year over year and beat the consensus mark of $120.5 million. Pre-tax income advanced 15.8% year over year to $44 million.
EQH’s Financial Update (as of Dec. 31, 2024)
Equitable Holdings exited the fourth quarter with total investments and cash and cash equivalents of $123.4 billion, which rose 11.8% from the 2023-end level. Total assets of $295.9 billion increased 6.9% from the figure at 2023-end.
Long-term debt amounted to $3.8 billion, up marginally from the figure as of Dec. 31, 2023.
Total equity of $3.4 billion dropped 21.5% from the 2023-end level.
Equitable Holdings’ Capital Returned
Equitable Holdings returned $335 million ($75 million cash dividend and $260 million repurchases) in the fourth quarter. The company has a payout ratio target of 60-70% of non-GAAP operating earnings during the 2023-2027 period.
EQH’s Full-Year Update
EQH reported adjusted EPS of $5.93 for 2024, which climbed 29.2% year over year. Total revenues of $12.4 billion advanced 18.1% year over year.
Policy charges and fee income grew 4.8% year over year to $2.5 billion. Premiums of $1.2 billion increased 5.3% year over year.
Pre-tax income increased nearly three-fold year over year to $2.1 billion.
Equitable Holdings’ Future View
The company aims to generate cash in the range of $1.6-$1.7 billion for 2025. It also reiterates its aim of $2 billion of annual cash generation over the 2023-2027 period. Non-GAAP operating EPS CAGR is reaffirmed in the band of 12-15% in the same time frame.
EQH’s Zacks Rank
Equitable Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Sector Players
Here are some other Finance sector players that have reported fourth-quarter results so far. The bottom-line results of Virtu Financial, Inc. VIRT, Euronet Worldwide, Inc. EEFT and American Express Company AXP beat the respective Zacks Consensus Estimate.
Virtu Financial reported fourth-quarter 2024 adjusted EPS of $1.14, which outpaced the Zacks Consensus Estimate by 32.6%. The bottom line recorded a more than four-fold increase year over year. Adjusted net trading income improved more than 75% year over year to $457.7 million. It beat the consensus estimate by 14.7%. Revenues from commissions, net and technology services amounted to $140.5 million, rising 22.8% year over year. Interest and dividend income of $123.8 million fell from $154.7 million a year ago.
Adjusted EBITDA jumped to $283.5 million from $99 million a year ago. Adjusted EBITDA margin of 57.5% improved 2,400 bps year over year. In the Market Making segment, adjusted net trading income was $347.9 million in the fourth quarter, up 107.7% year over year. The segment’s revenues rose 67.5% year over year to $706.5 million. The Execution Services unit recorded an adjusted net trading income of $109.8 million, which grew 17.6% year over year. Total revenues of $136.7 million grew 28.3% year over year.
Euronet reported fourth-quarter 2024 adjusted EPS of $2.08, which outpaced the Zacks Consensus Estimate by 3%. The bottom line rose 10% year over year. Total revenues improved 9% year over year and 10% on a constant-currency basis to $1.1 billion. The top line beat the consensus mark by 0.7%. EEFT’s net income was $45.3 million, which dropped 34.8% year over year. Adjusted EBITDA improved 12% year over year and 13% on a constant-currency basis to $165.8 million.
The EFT Processing segment’s revenues rose 12% year over year and 13% on a constant-currency basis to $265.6 million in the fourth quarter. Adjusted EBITDA was $61.7 million, which advanced 18% year over year and 19% on a constant-currency basis. The epay segment recorded revenues of $342.2 million, which grew 8% year over year and 10% on a constant-currency basis. Adjusted EBITDA improved 10% year over year and 12% on a constant-currency basis to $49.9 million. The Money Transfer segment posted revenues of $441.9 million, which rose 9% year over year and on a constant-currency basis.
American Express reported fourth-quarter 2024 EPS of $3.04, which beat the Zacks Consensus Estimate by a whisker. The bottom line climbed 16% year over year. Total revenues, net of interest expense, amounted to $17.2 billion, which also beat the consensus estimate by a whisker. The top line improved 8.7% year over year. Network volumes of $464 billion rose 7% year over year. Total interest income of $6.1 billion increased 9% year over year. Provision for credit losses declined 10% year over year to $1.3 billion.
The U.S. Consumer Services segment’s pre-tax income of $1.5 billion improved 5% year over year. Total revenues, net of interest expense, climbed 12% year over year to $8.3 billion. The Commercial Services segment recorded a pre-tax income of $814 million, which rose 22% year over year. Total revenues, net of interest expense, amounted to $4.1 billion, which grew 8% year over year. The International Card Services segment reported a pre-tax income of $34 million, which plunged 76% year over year.
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