Karman Holdings (NYSE: KRMN) saw its stock price plummet 6.64% in after-hours trading on Thursday, following the release of its third-quarter fiscal year 2025 financial results. The sharp decline came despite the company reporting better-than-expected revenue and raising its full-year guidance.

For the third quarter, Karman Holdings reported adjusted earnings of $0.10 per share, falling short of the analyst consensus estimate of $0.11. This represents a 150% increase from $0.04 per share in the same period last year. However, the company's quarterly revenue came in at $121.787 million, surpassing the analyst expectations of $118.125 million and marking a 41.67% year-over-year growth.

Despite the revenue beat, investors seemed to focus on the earnings miss, leading to the significant after-hours sell-off. The company's raised outlook for fiscal year 2025, with expected revenue now between $461 million to $463 million, up from the previous guidance of $452 million to $458 million, failed to offset concerns about the bottom-line performance. This reaction highlights the market's sensitivity to earnings results, even in the face of strong top-line growth and improved future guidance.