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Equitable (NYSE:EQH) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Equitable Holdings, Inc. (NYSE:EQH) is scheduled to report Q3 earnings results on October 28, 2020.

The company is expected to report earnings of $1.18/share on revenue of $3.333 billion. The consensus earnings per share (EPS) of $1.18/share is based on a poll of 9 analysts and represents a decline in eps of −14.5% over the same quarter last year, when the company reported earnings of $1.38/share.

The revenue forecast of $3.333 billion based on a poll of 5 analysts implies a year-over-year (YoY) decline in revenue of −3.0%. Last year the company reported $3.436 billion in revenue for the quarter.

Expected to report EPS contraction of −14.5% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $3,333.26 $3,436.00 −3.0%
EPS $1.18 $1.38 −14.5%

Earnings Call Trends

Historically, management has exceeded analyst expectations 7 out of the last 8 tracked quarters, and missed expectations 1 quarter.

What are your expectations from Equitable Holdings, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.87 $1 15.3% Beat
Q1, 2020 $1.11 $1.08 −2.4% Missed
Q4, 2019 $1.18 $1.37 15.9% Beat
Q3, 2019 $1.06 $1.38 29.7% Beat
Q2, 2019 $1.04 $1.14 9.8% Beat
Q1, 2019 $0.93 $0.98 5.1% Beat
Q4, 2018 $0.89 $0.93 4.7% Beat
Q3, 2018 $0.91 $1.23 35.5% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 1.1%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 4, 2020 $20.82 $21.05 1.1% Increase
May 7, 2020 $16.40 $17.85 8.8% Increase
February 26, 2020 $24.03 $21.45 −10.7% Decline
November 6, 2019 $22.51 $22.34 −0.8% Decline

Fundamentals And Technical Analysis

Equitable Holdings, Inc. is currently trading at $19.86/share, up 7.4% for the day. The company is trading at approximately 72.9% of its 52-week high of $27.30/share. The company’s stock price is down −5.6% since the last earnings report and up 0.2% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 37.56 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:EQH Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 234.46 and a forward P/E multiple of 4.36.

Equitable Holdings, Inc.’s current share price also implies a price-to-book (P/B) multiple of 0.53. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $19.86
P/E Ratio 234.5x
P/E Ratio (Fwd) 4.4x
PEG Ratio −2.3
Total Debt / Total Capital 27.7%
Levered Free Cash Flow -$421 million
EV / EBITDA −679.7x

Finbox

Equitable Holdings, Inc. is a mid-cap stock with a market capitalization of $8.314 billion and a total enterprise value of -$150.9 million. The company operates in the Financials sector and the Diversified Financial Services industry.

Equitable Holdings, Inc. operates as a diversified financial services company worldwide. The company operates through four segments: Individual Retirement, Group Retirement, Investment Management and Research, and Protection Solutions. The Individual Retirement segment offers a suite of variable annuity products primarily to affluent and high net worth individuals. The Group Retirement segment provides tax-deferred investment and retirement services or products to plans sponsored by educational entities, municipalities, and not-for-profit entities, as well as small and medium-sized businesses. The Investment Management and Research segment offers diversified investment management, research, and related solutions to a range of clients through institutional, retail, and private wealth management channels; and distributes its institutional research products and solutions. The Protection Solutions segment provides a range of universal life, indexed universal life, and term life products to help affluent and high net worth individuals, as well as small and medium-sized business owners; and a suite of life, short- and long-term disability, dental, and vision insurance products to small and medium-size businesses. The company was formerly known as AXA Equitable Holdings, Inc. and changed its name to Equitable Holdings, Inc. in January 2020. Equitable Holdings, Inc. was founded in 1859 and is based in New York, New York.

Expertise: financial modeling, mergers & acquisitions. Andy is also a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to do investment research. Andy’s background is in investment banking where he led the analysis on over 50 board advisory engagements involving mergers and acquisitions, fairness opinions and solvency opinions. Some of his board advisory highlights: - Sears Holdings Corp.’s $620 mm spin-off via rights offering of Sears Outlet, Hometown Stores and Sears Hardware Stores. - Cerberus Capital Management’s $3.3 bn acquisition of SUPERVALU Inc.’s New Albertsons, Inc. assets. Andy can be reached at andy@finbox.io or at +1 (516) 778-6257.

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