Equitable Holdings Inc (EQH) Reports Q3 2023 Earnings: Net Income Rises to $1.1 Billion
Net income of $1.1 billion, or $3.02 per share, reported for Q3 2023.
Non-GAAP operating earnings of $413 million, or $1.15 per share.
Combined net inflows of $3.0 billion in Retirement and Wealth Management segments.
Returned $315 million to shareholders during the quarter.
Equitable Holdings Inc (NYSE:EQH) released its earnings report for the third quarter ended September 30, 2023, on October 31, 2023. The company reported a net income of $1.1 billion, or $3.02 per share, and non-GAAP operating earnings of $413 million, or $1.15 per share. Adjusting for notable items, non-GAAP operating earnings were $468 million, or $1.30 per share.
Financial Performance
Equitable Holdings Inc (NYSE:EQH) reported total Assets Under Management/Administration (AUM/A) of $860 billion, a year-over-year increase of 10%, driven by higher markets over the prior twelve months. Net income attributable to Holdings for the third quarter of 2023 was $1.1 billion compared to $594 million in the third quarter of 2022. Non-GAAP operating earnings in the third quarter of 2023 was $413 million compared to $386 million in the third quarter of 2022. Adjusting for notable items, third quarter 2023 Non-GAAP operating earnings were $468 million or $1.30 per share.
Business Segment Highlights
The Individual Retirement segment reported another record quarter with net inflows of $1.7 billion and first year premiums up 28% over the prior year quarter. The Wealth Management segment reported net inflows of $1.6 billion, another quarter of organic growth, supported by a 2% increase in advisor productivity compared to the second quarter of 2023. The Asset Management segment reported net outflows of $1.9 billion with active net flows nearly flat and $1.6 billion of net inflows in the Retail channel.
Shareholder Value and Capital Management
The company returned $315 million to shareholders in the quarter, including $238 million of share repurchases, which is above the companys payout ratio target of 60-70% of Non-GAAP operating earnings. The company reported cash and liquid assets of $2.0 billion at Holdings, which remains above the $500 million minimum target, with a continued focus on maximizing financial flexibility to support consistent capital return.
Outlook
Equitable Holdings Inc (NYSE:EQH) continues to provide an attractive value proposition for investors with diverse sources of earnings driving predictable cash generation of $1.0 billion year-to-date as it remains on track for its $1.3 billion 2023 guidance. This supports the company's capital management program as it continues to consistently deliver on its payout ratio target of 60-70% of Non-GAAP operating earnings.
Explore the complete 8-K earnings release (here) from Equitable Holdings Inc for further details.
This article first appeared on GuruFocus.
