Shares of Red Cat Holdings Inc. (NASDAQ: RCAT) plummeted 10.28% during intraday trading on Thursday, as the company reported disappointing third-quarter financial results that fell short of analyst expectations.
The drone technology company reported a quarterly loss of $0.16 per share, missing the analyst consensus estimate of $0.10 by 60%. While revenue showed a significant year-over-year increase of 646.59% to $9.646 million, it still fell short of the expected $16.675 million by 42.15%. The substantial miss on both earnings and revenue likely contributed to the sharp decline in stock price.
Prior to the earnings release, options trading activity for Red Cat Holdings suggested that the market was anticipating a potential 9.9% move in share price post-earnings. The actual 10.28% drop aligns closely with these expectations, indicating that investors were prepared for volatility but reacted negatively to the disappointing results.
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