Equitable Holdings experienced a challenging fourth quarter, as results fell short of Wall Street expectations and the market response was negative. Management attributed the underperformance to elevated mortality claims in the individual life segment and higher commission expenses in retirement, both of which weighed on non-GAAP operating earnings. CEO Mark Pearson acknowledged that “growth was held back by elevated mortality claims,” while CFO Robin Raju noted, “the adverse mortality experience was concentrated in December and resulted from a high number of small claims with less reinsurance coverage.”
Insurance companies serve as the backbone of risk management, providing essential protection and financial security for individuals and businesses. But concerns about claims severity and tightening regulations have tempered enthusiasm,
limiting the industry’s gains to 3.4% over the past six months.
This return lagged the S&P 500’s 9.1% climb.
Financial services company Equitable Holdings (NYSE:EQH) fell short of the market’s revenue expectations in Q4 CY2025, with sales falling 5.2% year on year to $3.74 billion. Its non-GAAP profit of $1.73 per share was 0.9% below analysts’ consensus estimates.
Financial services company Equitable Holdings (NYSE:EQH) will be announcing earnings results this Wednesday after market close. Here’s what to look for.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
Let’s dig into the relative performance of Equitable Holdings (NYSE:EQH) and its peers as we unravel the now-completed Q3 life insurance earnings season.
Mid-cap stocks have the best odds of scaling into $100 billion corporations thanks to their tested business models and large addressable markets.
But the many opportunities in front of them attract significant competition, spanning from industry behemoths with seemingly infinite resources to small, nimble players with chips on their shoulders.
Stocks trading between $10 and $50 can be particularly interesting as they frequently represent businesses that have survived their early challenges.
However, investors should remain vigilant as some may still have unproven business models, leaving them vulnerable to the ebbs and flows of the broader market.
Equitable Holdings faced a challenging third quarter as it missed Wall Street’s revenue and adjusted earnings expectations, resulting in a significant negative market reaction. Management attributed the underperformance primarily to notable items including onetime impacts from its life reinsurance transaction and elevated mortality costs. CEO Mark Pearson acknowledged, “Earnings rebounded from the first half of the year, helped by growth in each of our core businesses and the completion of the life reinsurance transaction,” but also recognized impacts from assumption changes and transaction timing. The company’s focus on growing its asset and wealth management businesses partially offset headwinds in legacy life insurance, while annual assumption reviews validated a conservative approach to risk.
Market swings can be tough to stomach, and volatile stocks often experience exaggerated moves in both directions.
While many thrive during risk-on environments, many also struggle to maintain investor confidence when the ride gets bumpy.
Financial services company Equitable Holdings (NYSE:EQH) missed Wall Street’s revenue expectations in Q3 CY2025, with sales falling 61.6% year on year to $1.45 billion. Its non-GAAP profit of $1.48 per share was 8.1% below analysts’ consensus estimates.
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.
Wall Street bounced back Wednesday after Tuesday's sharp selloff in AI-driven stocks, as investors bought the dip amid solid corporate earnings and growing signs that the Federal Reserve may be nearing another interest rate cut.
Prudential Financial (NYSE: PRU) has once again demonstrated its financial resilience and commitment to shareholder returns, announcing a quarterly dividend declaration in conjunction with a strong Third Quarter 2025 earnings report. The venerable insurance giant delivered adjusted earnings per share (EPS) that significantly surpassed analyst expectations, signaling robust underlying business
Financial services company Equitable Holdings (NYSE:EQH) fell short of the markets revenue expectations in Q3 CY2025, with sales falling 61.6% year on year to $1.45 billion. Its non-GAAP profit of $1.48 per share was 8.5% below analysts’ consensus estimates.
Risk appetite cooled on Tuesday as investors interpreted the latest batch of corporate earnings as solid but not spectacular, offering a convenient excuse to take profits after strong year-to-date rallies.
Insurance providers use their expertise in risk assessment to help protect assets while offering consumers peace of mind through comprehensive coverage options. Still, investors are uneasy as insurers face challenges from catastrophic events and potential regulatory changes.
These doubts have certainly contributed to insurance stocks’ recent underperformance - over the past six months, the industry’s 6.1% gain has fallen behind the S&P 500’s 29.3% rise.
