NexPoint (NXRT) shares plummeted 5.14% during intraday trading on Thursday, as investors reacted to the company's disappointing second-quarter financial results. The significant drop reflects growing concerns about the real estate investment trust's performance amid challenging market conditions.

The sell-off was primarily triggered by NexPoint Real Estate's earnings report, which fell short of analysts' expectations on both the top and bottom lines. The company reported adjusted earnings per share (EPS) of $0.43, missing the consensus estimate of $0.46 by 7.13%. This represents a substantial 36.76% decrease compared to the same period last year when the company posted earnings of $0.68 per share.

Adding to investors' disappointment, NexPoint's quarterly sales came in at $12.07 million, significantly below the analyst consensus estimate of $21.93 million by a whopping 44.95%. Despite the miss, it's worth noting that this figure still represents a 79.07% increase over sales of $6.74 million in the same quarter last year. The mixed results, with improved year-over-year sales but declining profits, suggest that NexPoint may be facing challenges in maintaining profitability despite revenue growth, leading to the sharp stock price decline.