Shares of industrial water and wastewater pipe and equipment maker Core Main (NYSE: CNM) sank 16.7% on Tuesday, as of 2:12 p.m. EDT.
The company reported earnings this morning, and while revenue came in ahead of expectations, the company's falling margins apparently left a bad taste in investors' mouths. Also, given that the stock was already up 39% on year heading into Tuesday, a mixed result wasn't enough to overcome expectations.
In the quarter, Core Main saw revenue increase 10.6% to $1.74 billion, ahead of expectations. But the problem was that gross profits only rose 6.6%, and net income actually decreased by 2.4%. Like its peers, Core Main saw a big increase in pricing for its products following the pandemic, but that pricing is normalizing now. So while the company is still growing, its bottom line has stalled.
Source Fool.com