Sun Country Airlines Holdings, Inc. (SNCY) saw its stock plummet 5.18% in pre-market trading on Friday, despite reporting better-than-expected second-quarter earnings. The airline's shares continued their downward trend, having already fallen 1.4% this quarter and lost 20.5% year-to-date.

For the quarter ended June 30, Sun Country Airlines reported adjusted earnings of 14 cents per share, surpassing the mean analyst expectation of 12 cents. Revenue also beat forecasts, rising 3.6% to $263.62 million, compared to the $256.01 million analysts had anticipated. However, these positive results seem to have done little to assuage investor concerns.

The sharp decline in stock price despite the earnings beat suggests that investors may be focusing on other factors. Notably, the mean earnings estimate for Sun Country had fallen by about 39.4% over the last three months, indicating lowered expectations for the company's performance. Additionally, the airline industry continues to face challenges, which could be weighing on investor sentiment. Despite the current downturn, Wall Street maintains an overall "buy" rating on the stock, with a median 12-month price target of $16.50, representing a potential 29.8% upside from its last closing price.