Shares of Albany International (NYSE: AIN) were down 7.6% as of 2:23 p.m. EST on Tuesday. On Monday, the company delivered a better-than-expected earnings report for the fourth quarter. The good news is that earnings beat the consensus analyst estimate. The bad news is that management's outlook came in lower than analysts expected. 

Overall, the stock might have held up better today if it weren't for a high valuation. Here's what you need to know. 

The stock was trading at a price-to-earnings (P/E) ratio of 28 based on this year's earnings estimate entering the earnings report. That is at the higher end of Albany's trading range over the last few years. 

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Source Fool.com