Innodata (INOD) shares plummeted 9.13% in pre-market trading on Friday, despite the company reporting better-than-expected first-quarter earnings. The sharp decline comes as Wedbush analysts significantly reduced their price target for the stock, overshadowing the positive earnings surprise.

For the quarter ended March 31, Innodata reported adjusted earnings of 22 cents per share, surpassing the mean analyst expectation of 17 cents per share. The company's revenue came in at $58.34 million, slightly above the anticipated $57.65 million. Net income for the quarter stood at $7.79 million, demonstrating solid financial performance.

However, the market's enthusiasm was dampened by Wedbush's decision to cut its price target on Innodata from $75 to $58, while maintaining an Outperform rating. This significant reduction in the price target, representing a 22.7% decrease, likely contributed to investors' concerns about the stock's future potential. Despite the current setback, the average analyst rating for Innodata remains a "buy," with a median 12-month price target of $73.00, suggesting potential upside from current levels.