Patrick Industries (PATK) stock suffered a significant decline of 8.71% on November 1, 2024, after the company reported mixed third-quarter results and lowered its outlook for certain end markets.

For the third quarter, Patrick Industries reported a 6% increase in revenue to $919.4 million, driven by growth in the housing segment and contributions from recent acquisitions. However, the company's earnings per share of $1.80 slightly missed analyst expectations.

While Patrick Industries demonstrated resilience through strategic diversification, cost management, and margin expansion initiatives, the company faced challenges in specific end markets. Marine revenues declined by 21% year-over-year, reflecting softness in the marine market. Additionally, the company expects powersports revenue to decline sequentially in the fourth quarter due to OEMs focusing on reducing dealer inventories.

Furthermore, the company noted a shift towards smaller, entry-level RV units, impacting content per unit and potentially affecting revenue. Interest rate sensitivity and recent weather challenges have also impacted consumer purchasing patterns, slowing the recovery in demand.

Despite the overall revenue and earnings growth, investors reacted negatively to the cautious outlook and challenges in key end markets like marine and powersports. The earnings miss and expected margin pressure in Q4 also likely contributed to the sell-off, as the company warned of short-term inefficiencies and operating margin erosion due to reduced production levels.