EMCOR Group Inc (EME) saw its stock price plummet by 7.03% in pre-market trading on Wednesday, despite reporting better-than-expected first-quarter earnings. The construction and maintenance company's sharp decline comes as investors appear to be focusing on the company's narrowed guidance, which may have raised concerns about future growth prospects.

EMCOR reported first-quarter earnings of $5.26 per share, significantly beating the IBES estimate of $4.62. Revenue for the quarter came in at $3.87 billion, also surpassing analyst expectations of $3.78 billion. The company's adjusted earnings per share, which exclude costs related to mergers and acquisitions, stood at $5.41.

However, the positive earnings results were overshadowed by EMCOR's decision to narrow its non-GAAP 2025 EPS guidance to a range of $22.65 to $24.00. While the company reaffirmed its 2025 revenue guidance of $16.1 billion to $16.9 billion, the adjusted earnings outlook may have disappointed investors who were hoping for more robust growth projections. This cautious outlook, despite the strong Q1 performance, appears to be the primary driver behind the stock's significant decline, as traders reassess the company's growth trajectory in the face of potential economic headwinds.