Shares of Karman Holdings (NYSE:KRMN) plummeted 6.64% in after-hours trading following the release of its third-quarter fiscal year 2025 financial results. The aerospace and defense company reported mixed earnings, with revenue beating expectations but earnings per share falling short of analyst estimates.

Karman reported quarterly earnings of $0.10 per share, missing the analyst consensus estimate of $0.11 by 9.09%. However, the company saw a significant year-over-year improvement, with earnings more than doubling from $0.04 per share in the same period last year. Revenue for the quarter came in at $121.787 million, surpassing the analyst consensus estimate of $118.125 million by 3.10% and representing a robust 41.67% increase from the previous year.

Despite the strong revenue growth, investors seemed to focus on the earnings miss and potentially on the company's forward guidance. Karman raised its full-year 2025 revenue outlook to between $461 million and $463 million, up from the previous range of $452 million to $458 million. The company also provided a preliminary revenue growth outlook of 20% to 25% for fiscal year 2026. However, the market's negative reaction suggests that these projections may have fallen short of more optimistic expectations, leading to the sharp decline in stock price.