XPEL, Inc. (NASDAQ: XPEL) witnessed a sharp pre-market sell-off on Wednesday, with its shares plummeting over 10% after the company reported disappointing fourth-quarter earnings results.
The automotive products and services company reported Q4 earnings per share of $0.32, missing analysts' consensus estimate of $0.38 by a significant margin of 15.79%. While XPEL's revenue of $107.53 million slightly beat expectations of $106.98 million, the earnings miss overshadowed the top-line beat, leading to a pre-market plunge of 10.74% for the stock.
The company's Q4 net income stood at $8.9 million, with an EBITDA of $14.3 million and a gross margin of 40.6%. While XPEL's revenue increased by 1.88% compared to the same period last year, the decline in earnings per share compared to the previous year's $0.43 per share raised concerns among investors, prompting a significant sell-off in the pre-market session.