What Happened?
Shares of financial services company Equitable Holdings (NYSE: EQH) fell 7.1% in the morning session after the company reported disappointing third-quarter financial results, missing both revenue and earnings expectations. The company posted a pre-tax loss of $1.35 billion for the quarter. Its adjusted earnings of $1.48 per share fell short of analyst estimates of $1.62 and declined from $1.53 in the same period last year. Furthermore, Equitable's revenue of $1.45 billion missed consensus forecasts of $3.62 billion and plunged 61.6% year-over-year. The combination of a significant reported loss and failing to meet market expectations for profitability and sales appeared to weigh on the stock.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Equitable Holdings? Access our full analysis report here.
What Is The Market Telling Us
Equitable Holdings’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 26 days ago when the stock dropped 2.7% on the news that President Trump announced plans for a massive increase in tariffs on Chinese imports. The sudden announcement rattled investors, breaking a months-long period of calm and sending the S&P 500, Dow Jones, and Nasdaq indexes tumbling. Tariffs are essentially taxes on imported goods, and the prospect of a significant increase raises investor concerns about a potential trade war. Such measures could lead to higher costs for U.S. companies that rely on Chinese components or materials, potentially hurting their profits and leading to higher prices for consumers. The move introduces significant uncertainty into the economic outlook.
Equitable Holdings is flat since the beginning of the year, and at $47.22 per share, it is trading 15.8% below its 52-week high of $56.10 from June 2025. Investors who bought $1,000 worth of Equitable Holdings’s shares 5 years ago would now be looking at an investment worth $2,055.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free for active Edge members and will only take you a second.
