What Happened?
Shares of industrial equipment and engineered products manufacturer Albany (NYSE:AIN) fell 26.2% in the afternoon session after the company reported disappointing second-quarter financial results, including a significant earnings miss. The industrial goods manufacturer posted earnings per share of $0.57, which fell well short of the $0.77 analysts expected. The report also detailed a 6.2% year-over-year decline in revenue and a 13.2% drop in gross profit, driven by lower profitability in its Aerospace Engineered Composites division. Operating income was nearly cut in half compared to the same period last year. Following the weak results, analysts at Baird downgraded the stock to Neutral, citing concerns over the future profitability of both the company's aerospace and machine clothing businesses. The negative news sent the stock to a new 52-week low.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Albany? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Albany’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for Albany and indicate this news significantly impacted the market’s perception of the business.
Albany is down 34.9% since the beginning of the year, and at $51.54 per share, it is trading 45.3% below its 52-week high of $94.16 from August 2024. Investors who bought $1,000 worth of Albany’s shares 5 years ago would now be looking at an investment worth $1,072.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.