Astronics Corporation (NASDAQ: ATRO) saw its stock plummet 10.97% in after-hours trading on Wednesday, despite reporting better-than-expected second-quarter earnings. The aerospace and defense technology company's mixed financial results and concerns about potential tariff impacts appear to have spooked investors.

Astronics reported adjusted earnings of $0.38 per share for Q2, surpassing the analyst consensus estimate of $0.36 by 5.56%. This represents a significant 90% increase from the $0.20 per share reported in the same period last year. However, the company's quarterly sales of $204.678 million fell short of the expected $208.295 million, missing the mark by 1.74%.

Despite reporting record aerospace segment sales and raising the lower end of its 2025 revenue guidance to a range of $840 million to $860 million, investors seem to be focusing on the potential headwinds. Notably, Astronics disclosed that the potential impact of tariffs on annual material costs could range from $15 million to $20 million before mitigation efforts. This revelation, coupled with the revenue miss, may have contributed to the sharp sell-off in the after-hours session, as traders reassess the company's near-term prospects in light of these challenges.