The following is a summary of the Equitable Holdings, Inc. (EQH) Q3 2024 Earnings Call Transcript:
Financial Performance:
Equitable Holdings reported a significant increase in non-GAAP operating earnings, reaching $501 million, or $1.53 per share, which is up 34% year-over-year on a per share basis.
After adjusting for notable items, non-GAAP operating EPS was $1.59, showing a 22% increase compared to the previous year.
Assets under management and administration rose to over $1 trillion, marking a 20% increase year-over-year.The company returned $330 million to shareholders and expects cash generation for the year to be at the high end of the $1.4 billion to $1.5 billion guidance range.
The quarterly report highlighted a GAAP net loss of $134 million due to noneconomic impacts from the hedge portfolio, contrasted by gains in OCI.
Business Progress:
Equitable Holdings celebrated surpassing $1 trillion in assets under management and administration.
The company observed sustained demand in its retirement services, leading to net inflows of $1.7 billion during the quarter.
New strategic initiatives include a collaboration with JPMorgan Asset Management to develop innovative retirement solutions.
Equitable recorded record advisory net inflows of $1.9 billion in Wealth Management, underscoring the rising productivity and advisor recruitment successes.
AB's real estate relocation is expected to contribute positively to future margin expansion, anticipating an adjusted operating margin of about 33% in 2025.
Opportunities:
Strong momentum in US retirement services presents significant growth opportunities for the company, especially with the expected inflow of $6.8 billion over the last 12 months.
Collaboration with major asset managers like JPMorgan Asset Management to offer new retirement solutions broadens the company's market scope and enhances product offerings.
Risks:
The expected gradual growth in AI services, as outlined for company operations in future plans, may pose risks if the technology does not scale as anticipated or if general availability milestones are delayed.
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.
