Shares of Axalta Coating Systems (AXTA) plummeted 5.44% during Wednesday's trading session following the release of its first-quarter 2025 financial results and second-quarter guidance. The industrial chemical coatings manufacturer reported mixed results for Q1 and provided a weaker-than-expected outlook for Q2, triggering investor concern.

For the first quarter, Axalta reported adjusted earnings per share (EPS) of $0.59, surpassing analysts' expectations of $0.54 and improving from $0.51 in the same period last year. However, the company's sales for the quarter fell short of estimates, coming in at $1.26 billion compared to the expected $1.29 billion and down from $1.29 billion a year earlier. This mixed performance, with earnings beating expectations but revenue missing the mark, contributed to investor uncertainty.

The market's negative reaction was further fueled by Axalta's second-quarter guidance. The company expects adjusted diluted EPS of $0.60 to $0.63 for Q2, which falls below the Street's forecast of $0.65. Despite the near-term challenges, Axalta maintained its full-year 2025 outlook, projecting adjusted diluted EPS of $2.50 to $2.60, which is in line with analysts' expectations. The company also anticipates low single-digit revenue growth in Q2 from the $1.35 billion reported last year, with adjusted EBITDA projected between $280 million and $290 million. The combination of mixed Q1 results and disappointing Q2 guidance appears to have shaken investor confidence, leading to the significant stock price decline.