NYSE$EQH
Equitable Holdings Inc. · Q2 2020 earnings
Q2 2020 earnings · · Investor relations
Briefing
Equitable Holdings' Q2 2020 results demonstrated business model resilience and manageable COVID-19 impacts.
Equitable Holdings reported a GAAP Net loss of $4.0 billion, or $8.96 per common share, but a Non-GAAP operating earnings of $459 million, or $1.00 per common share. The company's assets under management grew by 3% year-over-year to $711 billion. They returned $102 million to shareholders in Q2, and $376 million YTD.
- Total AUM was $711 billion, a year-over-year increase of 3%.
- Net loss attributable to Holdings for the second quarter of 2020 was $(4.0) billion.
- Non-GAAP operating earnings in the second quarter of 2020 was $459 million.
- Combined RBC ratio of approximately 415%, reflecting $1.2 billion distribution from Equitable Financial in May.
Headline financials
Revenue & EPS history
Equitable Holdings · Revenue · Quarterly
-$2.53B
Revenue by segment
Equitable Holdings · $1.68B total across 3 segments · Q3 2023
- Asset Management Operating Earnings$1.03B+3.8%61.5%
- Wealth Management Operating Earnings$390M+10.5%23.2%
- Corporate and Other Operating Loss$257M+15.8%15.3%
Forward guidance
The Company currently estimates a net operating earnings impact of $30-60 million per 100,000 excess COVID-19 related deaths. Holdings is revising its prior guidance related to Variable annuity product features from $700 million to $1.0-1.3 billion per annum assuming a base case scenario of 6.5% equity markets and interest rates increasing 10 basis points. Holdings is revising its prior guidance related to Variable annuity product features from $700 million to $1.0-1.3 billion per annum assuming a base case scenario of 6.5% equity markets and interest rates increasing 10 basis points
Tailwinds
- Achieved net savings run rate of $68 million
- The Company remains on track to deliver $75 million pre-tax productivity gains, net of reinvestment, by year-end
- Holdings recognized an incremental $25 million of expense savings relative to expectations in the second quarter
- Completed execution of the Company’s general account rebalance in the third quarter of 2019
- Delivered the $160 million annualized net investment income goal.
Headwinds
- net operating earnings impact of $30-60 million per 100,000 excess COVID-19 related deaths
- mismatch between derivative assets and GAAP liabilities has increased
- magnifying the Company’s GAAP Net income sensitivity
- Statutory sensitivity has increased
- options budget guidance of $200-250 million per annum
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2020
-0.2%
Avg return
Earnings day
+0.5%
Avg return
5 days after
+0.7%
Avg return
30 days after
57%
21 / 37 earnings
Positive
+8.8%
Q1 2020
Best reaction
-10.7%
Q4 2019
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.0% | +2.7% | -3.1% | |
| Q4 2025 | -3.1% | +1.9% | -12.4% | |
| Q3 2025 | -7.4% | -8.7% | -6.2% | |
| Q1 2025 | -3.1% | -1.4% | +3.6% | |
| Q4 2024 | -2.3% | +0.4% | -5.9% | |
| Q3 2024 | -1.4% | +4.9% | +5.7% | |
| Q2 2024 | +1.7% | -8.7% | -2.0% | |
| Q1 2024 | +3.0% | +2.9% | +10.8% | |
| Q4 2023 | +3.2% | +3.3% | +2.8% | |
| Q3 2023 | -4.1% | +5.2% | +16.8% | |
| Q2 2023 | -1.3% | +0.4% | +0.8% | |
| Q1 2023 | -8.0% | -5.7% | +3.0% | |
| Q4 2022 | -2.0% | -0.2% | -16.0% | |
| Q3 2022 | -8.2% | -1.7% | +3.4% | |
| Q2 2022 | +3.6% | +3.5% | +6.7% | |
| Q1 2022 | -5.7% | -5.2% | +0.1% | |
| Q4 2021 | -4.5% | -4.5% | -17.4% | |
| Q3 2021 | +3.8% | +2.3% | -7.9% | |
| Q2 2021 | +1.5% | +2.1% | -0.1% | |
| Q1 2021 | +1.5% | -0.6% | -9.2% | |
| Q4 2020 | +4.7% | +0.7% | +7.5% | |
| Q3 2020 | +2.5% | +7.9% | +21.0% | |
| Q2 2020 | +1.1% | +3.0% | +1.4% | |
| Q1 2020 | +8.8% | +0.1% | +35.3% | |
| Q4 2019 | -10.7% | -9.0% | -38.1% | |
| Q3 2019 | -0.8% | +4.7% | +10.0% | |
| Q2 2019 | +4.1% | +2.8% | +3.9% | |
| Q1 2019 | +0.9% | -3.3% | -5.2% | |
| Q4 2016 | +2.6% | +2.8% | +11.0% | |
| Q4 2018 | +5.0% | +4.4% | +4.7% | |
| Q3 2018 | -2.6% | -5.5% | -18.2% | |
| Q2 2018 | +2.7% | +4.4% | +5.4% | |
| Q2 2017 | +2.7% | +4.4% | +5.4% | |
| Q3 2017 | +2.7% | +4.4% | +5.4% | |
| Q4 2017 | +1.5% | -1.5% | +0.1% | |
| Q1 2017 | +1.5% | +1.0% | +1.2% | |
| Q1 2018 | +1.0% | +3.6% | +0.2% | |
| Q3 2016 | — | — | — | |
| Q2 2016 | — | — | — | |
| Q1 2016 | — | — | — |
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