Overview

* Equitable Holdings ( EQH ) Q2 net loss of $349 mln, adjusted EPS misses expectations

* Company closed $2 bln reinsurance deal, reducing mortality exposure by 75%

* Positive net flows in Retirement and Wealth Management drive AUM up 8% yr/yr

Outlook

* Equitable Holdings expects EPS growth to accelerate in H2 2025

* Company aims for $2 bln annual cash generation by 2027

* Equitable Holdings ( EQH ) targets 12-15% EPS growth CAGR by 2027

Result Drivers

* REINSURANCE TRANSACTION - Closed $2 bln Individual Life reinsurance deal with RGA, reducing mortality exposure by 75%

* RETIREMENT AND WEALTH MANAGEMENT - Positive net flows of $1.9 bln in Retirement and $2.0 bln in Wealth Management contributed to AUM growth

* ELEVATED MORTALITY - Elevated mortality in Individual Life block led to lower-than-expected Non-GAAP operating earnings

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $1.1 $1.29

Adjusted (11

EPS Analysts

)

Q2 EPS -$1.21

Q2 Net -$349

Income mln

Q2 $352 mln

Adjusted

Operatin

g

Earnings

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the diversified investment services peer group is "buy"

* Wall Street's median 12-month price target for Equitable Holdings Inc ( EQH ) is $66.00, about 22.7% above its August 4 closing price of $50.99

* The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)