Shares of Monro Muffler Brake (NASDAQ: MNRO) plummeted 7.25% at the market open on Wednesday following the release of its second-quarter fiscal 2026 financial results. Despite beating earnings estimates, the automotive service company's stock took a hit as sales fell short of expectations and management refrained from providing full-year guidance.

Monro reported adjusted earnings per share of $0.21, surpassing the analyst consensus estimate of $0.18 and marking a 23.53% increase from the same period last year. However, quarterly sales came in at $288.914 million, missing the analyst projection of $299 million and representing a 4.14% decrease year-over-year. The company's net income for the quarter stood at $5.665 million, while comparable store sales growth was a modest 1.1%.

Investors appear to be particularly concerned about Monro's decision not to provide financial guidance for fiscal 2026 at this time, which may signal uncertainty about future performance. While the company expects to deliver positive comparable store sales for the fiscal year, the lack of specific targets has likely contributed to the negative market reaction. The combination of missed sales estimates and withheld guidance seems to have overshadowed the earnings beat, leading to the significant stock decline in early trading.