Published on 12 May 2023 on Zacks via Yahoo Finance

Equitable (EQH) Eyes 12-15% Bottom-Line Growth Per Annum

Equitable Holdings, Inc. EQH provided its long-term financial guidance and growth targets at its inaugural investor day presentation. The company expects its bottom line to grow 12-15% per annum through 2027, wherein organic earnings generation and margin expansion will play vital roles.

With a growing older population, the company’s Retirement, Asset and Wealth Management businesses are expected to hold immense opportunities ahead. It is likely to face a rapid increase in demand for its services, which is expected to enable EQH to boost cash generation by 50% over the next five years. This strong cash generation ability will support a 60-70% payout ratio.

By 2027, the company expects to generate $2 billion cash annually. In 2023, it anticipates to generate $1.3 billion in cash. Its long-term goals for 2027 include $150 million in combined productivity savings. Also, by this time, the company intends to generate $110 million in incremental general account income. It boasts a strong record of execution.