Shares of American Superconductor (NASDAQ:AMSC) plummeted 20.04% in after-hours trading on Wednesday following the release of its second-quarter financial results. The sharp decline came despite the company beating earnings estimates, as investors focused on a significant revenue miss.

American Superconductor reported adjusted earnings per share of $0.20, surpassing the analyst consensus estimate of $0.15 by 31.58%. This represents a 25.93% decrease compared to earnings of $0.27 per share in the same period last year. However, the company's quarterly sales of $65.862 million fell short of the analyst consensus estimate of $67.850 million by 2.93%.

While the company managed to grow its revenue by 20.91% year-over-year from $54.471 million, the failure to meet market expectations appears to have spooked investors. The substantial after-hours drop suggests that Wall Street was particularly focused on top-line growth and may be concerned about the company's ability to meet future revenue targets. Despite posting a net income of $4.75 million for the quarter, the revenue miss seems to have overshadowed the positive earnings surprise, leading to the steep sell-off in the stock.