Equitable Holdings Inc (NYSE: EQH), a leading financial services company, saw its stock soar by 7.89% in pre-market trading on November 6, 2024, following the release of its impressive third-quarter earnings results. The company reported a 34% year-over-year increase in non-GAAP operating earnings per share, reaching $1.53, driven by strong organic growth across its retirement, asset management, and wealth management businesses.
One of the key highlights of EQH's performance was the positive net flows it experienced across all its major segments. The company's Retirement business saw net inflows of $1.7 billion in the quarter, while its Asset Management arm, AllianceBernstein (AB), reported its third consecutive quarter of organic growth, with total net inflows of $1.1 billion and active net inflows of $2.2 billion. Additionally, EQH's Wealth Management business reported record advisory net inflows of $1.9 billion, with assets under administration exceeding $100 billion.
EQH's integrated business model positions the company well to capitalize on the tremendous growth opportunities in the U.S. retirement market. As the market leader in the Registered Index-Linked Annuity (RILA) segment, the fastest-growing annuity segment, EQH benefits from its ability to capture value across the entire retirement value chain. The company partners closely with AB to source the assets needed to generate competitive risk-adjusted yields, while also leveraging its proprietary distribution through Equitable Advisors, enabling it to innovate and create new markets.
Mark Pearson, President and CEO of Equitable Holdings, expressed optimism about the company's growth prospects, stating, "Looking forward, I'm excited about the growth opportunities across U.S. retirement, asset management, and wealth management. I'm also convinced that Equitable's integrated business model provides us with real competitive advantages that will enable us to deliver value to all our stakeholders."
Despite the strong performance, EQH acknowledges potential risks and challenges, including increased competition, regulatory changes, and market volatility. However, the company's diversified business model and ability to offer an all-weather portfolio of products position it well to navigate these challenges and continue delivering profitable growth.
EQH's robust capital management program and strong cash flow generation further support its growth ambitions. The company returned $330 million to shareholders during the quarter, equating to a 65% payout ratio, and expects to achieve the high end of its $1.4 billion to $1.5 billion cash generation guidance for 2024.