Shares of Comfort Systems USA (FIX), a leading provider of commercial, industrial, and residential heating, ventilation, and air conditioning (HVAC) services, plummeted by 13.37% on October 25, 2024, following the company's Q3 2024 earnings call.
During the call, Comfort Systems USA provided guidance that tempered investors' expectations for future revenue growth. The company stated that it expects Q4 2024 revenue to increase at a rate "comparable" to Q3, while projecting 2025 revenue to grow in the high single or low double digits.
Despite the positive revenue outlook, the market reacted negatively to the guidance, as investors had likely anticipated more robust growth projections. The relatively modest growth expectations were seen as a disappointment and triggered a significant selloff in the stock.
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