Innovex International, Inc. (NYSE: INVX) stock plummeted 5.10% in the intraday trading on Tuesday. The significant drop comes after the company reported its latest earnings results.
According to a report from Simply Wall St, the company's recent profit increase was largely driven by a $58 million gain attributed to unusual items. The report raised concerns that such gains are often not repeated in the following year, suggesting that the company's statutory profits may not accurately reflect its underlying earnings power.
While Innovex International's earnings per share have grown impressively over the past three years, the report cautions investors against being too comfortable with the company's earnings, as the unusual items could provide an overly positive impression of the company's performance.
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