EMCOR Group Inc (EME) shares plummeted 7.03% in pre-market trading on Wednesday, despite reporting better-than-expected first-quarter results. The construction and maintenance company's stock decline comes as a surprise, given its strong financial performance and reaffirmed revenue guidance for the year.

EMCOR reported first-quarter earnings of $5.26 per share, significantly beating the analysts' estimate of $4.62. The company's revenue for the quarter stood at $3.87 billion, also surpassing the expected $3.78 billion. Additionally, EMCOR narrowed its non-GAAP 2025 EPS guidance to $22.65-$24.00 while reaffirming its full-year revenue guidance of $16.1-$16.9 billion.

The sharp stock decline, despite positive earnings results, suggests that investors may be concerned about the narrowed EPS guidance and potential headwinds in the construction industry. Market participants might be interpreting the guidance adjustment as a sign of caution from management regarding future performance. Furthermore, the broader economic uncertainties and potential slowdown in the construction sector could be weighing on investor sentiment, overshadowing EMCOR's strong quarterly performance.