Equitable Holdings, Inc. Reported A Surprise Loss, And Analysts Have Updated Their Forecasts

It's been a good week for Equitable Holdings, Inc. (NYSE:EQH) shareholders, because the company has just released its latest third-quarter results, and the shares gained 9.1% to US$50.40. Revenues fell badly short of expectations, with revenue of US$3.1b missing analyst predictions by 20%. Unsurprisingly, the statutory profit the analysts had been forecasting evaporated, turning into a loss of US$0.47 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Equitable Holdings

Following the latest results, Equitable Holdings' seven analysts are now forecasting revenues of US$16.7b in 2025. This would be a huge 52% improvement in revenue compared to the last 12 months. Equitable Holdings is also expected to turn profitable, with statutory earnings of US$6.41 per share. In the lead-up to this report, the analysts had been modelling revenues of US$16.6b and earnings per share (EPS) of US$6.37 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of US$48.90, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Equitable Holdings analyst has a price target of US$60.00 per share, while the most pessimistic values it at US$43.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Equitable Holdings' past performance and to peers in the same industry. It's clear from the latest estimates that Equitable Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 40% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Equitable Holdings is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Equitable Holdings analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Equitable Holdings has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.