Equitable Holdings Stock Fair Value Calculator – Equitable Holdings Misses Earnings and Revenue Estimates by Wide Margin
May 5, 2023
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Equitable Holdings ($NYSE:EQH), a publicly traded company, recently released its second quarter earnings report, and it missed analyst estimates by a wide margin. Equitable Holdings reported Non-GAAP EPS of $0.96, which fell short of expectations by $0.23.
Additionally, Equitable Holdings reported revenue of $2.36B, which was lower than the predicted figure by $910M. This news comes as a disappointment to investors, as they had expected much better results from the company. Equitable Holdings is a diversified financial services firm that provides asset management, insurance, banking and other services to individual and institutional customers. The company’s stock had been performing well in recent months, but the latest earnings report has caused the stock to dip significantly due to the weak results. Investors are now anxiously waiting to see if the company can turn things around in the future and deliver better results. The earnings miss is a setback for Equitable Holdings, but it remains to be seen if the company can rebound in the coming quarters.
Earnings
EQUITABLE HOLDINGS recently reported its latest financial results for the quarter ending December 31 2022. Unfortunately, the company failed to meet analyst expectations, delivering a total revenue of 1896.0M USD and a net income loss of 789.0M USD. This represents a 42.9% decrease in total revenue, and an even more staggering 410.6% decrease in net income compared to the previous year. Although EQUITABLE HOLDINGS’s total revenue has grown significantly over the past 3 years, rising from 516.0M USD to 1896.0M USD, these latest earnings results are far from impressive.
Investors were evidently disappointed in the company’s performance, as evidenced by the stock’s sharp decline following the announcement of the earnings report. Clearly, EQUITABLE HOLDINGS needs to take decisive steps to shore up their financial performance if they want to regain investor confidence.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Equitable Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 14.02k | 1.71k | 12.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Equitable Holdings. More…
| Operations | Investing | Financing |
| -851 | -7.49k | 7.65k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Equitable Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 253.47k | 249.62k | 4.54 |
Key Ratios Snapshot
Some of the financial key ratios for Equitable Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.5% | – | 19.4% |
| FCF Margin | ROE | ROA |
| -7.3% | 68.0% | 0.7% |
Market Price
On Wednesday, Equitable Holdings reported their quarterly earnings and revenues that missed analysts’ expectations by a wide margin. The stock opened at $25.0 and closed at $24.5 at the end of the trading day, down by 1.8% from its previous closing price of 25.0. This poor performance has resulted in a drop in Equitable Holdings’ stock price and could be a sign of difficult times ahead for the company. Live Quote…
Analysis – Equitable Holdings Stock Fair Value Calculator
At GoodWhale, we believe in helping our clients make informed decisions. That’s why we offer a comprehensive financial analysis of EQUITABLE HOLDINGS to help investors better understand the company. Our proprietary Valuation Line gives us a fair value of EQUITABLE HOLDINGS shares at $41.5, and currently the stock is trading below this figure at $24.5, meaning it is undervalued by 40.9%. This is an opportunity for investors to buy into EQUITABLE HOLDINGS at a discounted price. We hope our analysis can help you make the right decision for your investments. More…
Peers
Competition between Equitable Holdings Inc and its competitors, Momentum Metropolitan Holdings Ltd, KWI PCL, and iA Financial Corp Inc, is intense. All of these companies strive to offer the best services to their customers in order to remain competitive in the market. Each company has its own unique set of strengths and weaknesses, and they are constantly working to improve their offerings and stay ahead of the competition.
– Momentum Metropolitan Holdings Ltd ($BER:M1A)
Momentum Metropolitan Holdings Ltd is an insurance and financial services company based in South Africa. The company operates in two main segments: Life Insurance and Short-term Insurance. As of 2022, the company has a market cap of 1.41 billion dollars and a Return on Equity of 26.28%. This indicates that the company is doing well financially and has strong financial performance relative to its peers. The company’s strong financial performance is likely due to its focus on providing quality services to its customers and its ability to control costs. Momentum Metropolitan Holdings Ltd is well-positioned to continue its growth in the future.
– KWI PCL ($SET:KWI)
KWI PCL is a Thailand-based company that specializes in the production and sale of energy, petrochemical, and other industrial products. The company has a market capitalization of 5.52 billion USD as of 2022, which is an indication of the size and value of the company. KWI PCL also has a Return on Equity (ROE) of -1.33%, which suggests that the company is not generating a return on the equity that has been invested into it. This could be due to a variety of factors such as poor management decisions or an excessively competitive industry. Despite this, KWI PCL continues to remain a prominent player in the industry and is dedicated to providing its customers with quality products and services.
– iA Financial Corp Inc ($TSX:IAG)
Merrill Lynch & Co. Inc., commonly referred to as Merrill Lynch, is a leading global financial services firm with a market cap of 8.08B as of 2022. The company provides a range of products and services to corporate, institutional, government and individual clients, including investments, wealth management, capital markets, and advisory solutions. Merrill Lynch is renowned for its strong Return on Equity of 9.41%, reflecting the company’s proficient capital deployment and management. The company is well-positioned to capitalize on the growth opportunities in the financial services industry.
Summary
Equitable Holdings reported its quarterly earnings results, missing analyst estimates on both revenue and non-GAAP earnings per share (EPS) figures. Looking forward, investors should watch for continuing developments in the company’s financial performance and changes in the competitive landscape to assess the long-term potential of Equitable Holdings as an investment.
