Clearfield, Inc. (NASDAQ: CLFD) shares plummeted 7.95% in pre-market trading on Friday, following the release of the company's fiscal first-quarter 2025 earnings results. The mixed performance and ongoing challenges weighed on investor sentiment.

In the first quarter, Clearfield reported a 4% year-over-year increase in net sales to $35.5 million, driven by a 6% growth in the Clearfield segment. However, the company posted a net loss per share of $0.13, smaller than guidance but highlighting the financial challenges it faces.

The Nestor segment experienced a 6% year-over-year decline in net sales, reflecting difficulties in that part of the business. Additionally, the company faces potential cost increases due to the introduction of tariffs on Mexican goods, which could impact manufacturing costs.

For fiscal 2025, Clearfield provided a net sales outlook of $170 million to $185 million, with the Clearfield segment expected to grow in line with or above the industry forecast of 12.5%. The company also anticipates revenue contributions from the Broadband Equity, Access, and Deployment (BEAD) program starting in fiscal 2026. However, uncertainties related to changes in the U.S. administration could affect future revenue projections from this program.

Looking ahead, Clearfield Inc. (NASDAQ:CLFD) expects a net loss per share in the range of $0.16 to $0.21 for the second quarter of fiscal 2025, indicating ongoing financial challenges. Despite the positive growth in the Clearfield segment and strategic initiatives, the company continues to navigate headwinds and uncertainties, which have contributed to the pre-market stock plunge.