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(Need short response) A company forecast that its quarterly earnings would increase by 30% and it...

(Need short response)

A company forecast that its quarterly earnings would increase by 30% and it actually sees an increase of 27%. If the efficient markets hypothesis holds, what should happen to the price of the company's stock?

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The stock's price should fall. The price had adjusted based on the statement of expected earnings. When the actual number turned out to be lower than expected, the stock price changes to reflect the additional information. It is a week form of market efficiency, the release of this information will reflect on the stock prices as the week form of market efficiency will reflect all the current available information.

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