SM Energy Co (SM) saw its stock price plummet by 5.07% in pre-market trading on Friday, despite reporting better-than-expected earnings for the first quarter of 2025. The oil and gas exploration company's shares have been under pressure, having fallen 23.9% this quarter and lost 41.2% year-to-date.

SM Energy reported adjusted earnings of $1.76 per share for the quarter ended March 31, surpassing the mean analyst expectation of $1.61 per share. Revenue also beat estimates, rising 50.8% to $844.54 million, compared to the expected $828.72 million. However, these positive results weren't enough to stem the stock's decline.

The stock's downward trajectory appears to be influenced by several factors. Mizuho cut its target price for SM Energy to $46 from $48, signaling reduced confidence in the company's near-term prospects. Additionally, analysts have been revising their earnings estimates downward, with the mean estimate falling by about 21% over the last three months. In the past 30 days alone, five analysts negatively revised their earnings estimates for the company. These factors, combined with broader market sentiment, seem to be outweighing the positive Q1 results, leading to today's significant stock price decline.