Loar Holdings Inc (NYSE: LOAR) shares plummeted 5.03% in intraday trading on Wednesday, despite reporting better-than-expected third-quarter earnings. The aerospace supplier's stock faced headwinds as investors grappled with valuation concerns and slightly disappointing guidance for 2026.
Loar reported adjusted third-quarter earnings of $0.35 per share, significantly surpassing the analyst consensus estimate of $0.22 and marking a 133% increase from the same period last year. The company's sales for the quarter reached $126.8 million, up 22.44% year-over-year, narrowly missing the analyst estimate of $127.05 million.
Despite the strong Q3 performance and raised guidance for 2025, investors seemed to focus on the company's 2026 outlook and valuation metrics. Loar expects full-year 2026 net sales in the range of $540 million to $550 million, falling short of the FactSet estimate of $553.8 million. Additionally, the company's price-to-earnings ratio of approximately 77 times estimated 2026 earnings raised concerns about its lofty valuation, potentially contributing to the stock's sharp decline.
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