Yahoo Finance Equitable (EQH) Eyes 12-15% Bottom-Line Growth Per Annum
Equitable Holdings, Inc. EQH provided its long-term financial guidance and growth targets at its inaugural investor day presentation. The company expects its bottom line to grow 12-15% per annum through 2027, wherein organic earnings generation and margin expansion will play vital roles.
With a growing older population, the company’s Retirement, Asset and Wealth Management businesses are expected to hold immense opportunities ahead. It is likely to face a rapid increase in demand for its services, which is expected to enable EQH to boost cash generation by 50% over the next five years. This strong cash generation ability will support a 60-70% payout ratio.
By 2027, the company expects to generate $2 billion cash annually. In 2023, it anticipates to generate $1.3 billion in cash. Its long-term goals for 2027 include $150 million in combined productivity savings. Also, by this time, the company intends to generate $110 million in incremental general account income. It boasts a strong record of execution.
The diversified financial services company’s Equitable business is likely to continue gaining on retirement products, as the older population is expected to significantly increase in the coming years. The business had $221 billion in assets under management at the March quarter end.
During this time, EQH’s asset management business AllianceBernstein and wealth management business Equitable Advisors had $676 billion and $76 billion assets under management and administration, respectively.
Equitable Holdings, Inc. Price
Equitable Holdings, Inc. price | Equitable Holdings, Inc. Quote
Zacks Rank & Key Picks
Equitable currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader finance space are Allianz SE ALIZY, Berkshire Hathaway Inc. (BRK.B) and Owl Rock Capital Corporation ORCC, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Allianz’s 2023 earnings is pegged at $2.54 per share, implying 48.5% year-over-year growth. Over the past 30 days, ALIZY has witnessed one upward estimate revision against none in the opposite direction.
The Zacks Consensus Estimate for Berkshire Hathaway’s 2023 bottom line is pegged at $18.97 per share, indicating 35.8% year-over-year growth. Moreover, the consensus estimate for BRK.B’s top line implies a 1.3% year-over-year increase.
The Zacks Consensus Estimate for Owl Rock Capital’s 2023 earnings is pegged at $1.79 per share, suggesting 27% year-over-year growth. Also, the consensus mark for ORCC’s revenues in 2023 indicates a 24.2% year-over-year rise.
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