Shares of Astec Industries (ASTE) plummeted 5.19% in pre-market trading on Wednesday after the company reported mixed third-quarter results. Despite beating revenue expectations, the heavy equipment manufacturer's bottom line fell short of estimates, raising concerns among investors.

For the quarter ended September 30, Astec reported net sales of $350.1 million, surpassing analyst expectations of $330.92 million. However, the company posted a net loss of $4.2 million, or $0.18 per share, compared to a loss of $6.2 million, or $0.27 per share, in the same quarter last year. Adjusted earnings per share came in at $0.47, which was above the consensus estimate of $0.38, but the GAAP loss per share disappointed investors.

The sharp stock decline suggests that market participants were focused on Astec's GAAP loss and may have concerns about the company's profitability despite the revenue growth. Additionally, the company's operating margin remained thin at 0.3%, indicating ongoing challenges in converting sales to profit. While Astec updated the lower end of its full-year adjusted EBITDA guidance to $132 million, maintaining the top end at $142 million, the market reaction implies that investors were hoping for a more robust outlook given the current economic environment.