Modine Manufacturing (MOD) saw its shares plummet 8.68% in after-hours trading on Tuesday, despite reporting second-quarter fiscal 2026 results that exceeded analysts' expectations. The sharp decline suggests that investors may have been looking for even stronger performance or more optimistic guidance from the company.

For the second quarter, Modine reported earnings per share (EPS) of $0.83, with adjusted EPS coming in at $1.06, surpassing the $1.03 estimate. Revenue for the quarter reached $738.9 million, comfortably beating the projected $699.8 million. The company's adjusted EBITDA of $103.8 million also topped expectations of $101.2 million.

Despite these positive results, Modine's forward-looking statements seem to have fallen short of market expectations. The company provided an outlook for the fiscal year, projecting net sales growth of 15-20% and adjusted EBITDA between $440-470 million. While these figures represent continued growth, they may not have been as robust as some investors had hoped, potentially explaining the after-hours sell-off. The market's reaction underscores the high expectations placed on companies in the current economic environment, where even beating estimates may not be enough to satisfy investors looking for exceptional growth and optimistic future guidance.