Loar Holdings Inc (LOAR) saw its stock plummet by 5.54% in pre-market trading on Tuesday, despite the company revising its full-year 2025 outlook upward. The sharp decline comes as a surprise given the positive financial projections announced by the company.
In its latest guidance, Loar Holdings raised its full-year 2025 adjusted earnings per share (EPS) range to $0.71 - $0.76, surpassing the FactSet estimate of $0.65. The company also projected net sales for the year to be between $482 million and $490 million, which is in line with the FactSet estimate of $488.2 million. Additionally, Loar Holdings revised its fiscal year adjusted EBITDA outlook to $182-$185 million.
The company's first-quarter performance also exceeded expectations, with adjusted earnings per share reaching $0.20, compared to the analysts' consensus estimate of $0.17. Despite these positive indicators, investors seem to be reacting negatively, possibly due to concerns about the broader market conditions or specific factors not immediately apparent in the reported figures. The stark contrast between the company's improved outlook and the stock's significant drop suggests that other market forces or investor sentiment may be at play.
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