Shares of Red Cat Holdings Inc. (RCAT) plummeted 10.28% in intraday trading on Thursday following the release of its disappointing third-quarter earnings report. The drone technology company's financial results fell significantly short of analyst expectations, triggering a sharp sell-off in the stock.

Red Cat Holdings reported a quarterly loss of $0.16 per share, missing the analyst consensus estimate of $0.10 by 60%. While this figure remained unchanged from the same period last year, it raised concerns among investors about the company's profitability. More alarmingly, the company's quarterly sales came in at $9.646 million, falling well short of the analyst consensus estimate of $16.675 million by a substantial 42.15%.

Despite the earnings miss, it's worth noting that Red Cat Holdings did achieve a remarkable 646.59% increase in sales compared to the same period last year when it reported $1.292 million in revenue. However, the significant underperformance relative to market expectations appears to have overshadowed this year-over-year growth, leading to the stock's sharp decline. The market's reaction suggests that investors are reassessing the company's near-term growth prospects and financial health in light of these results.