NexPoint (NXRT) shares plummeted 5.14% during Thursday's intraday trading session, following the release of the company's disappointing second-quarter financial results. The significant drop reflects investors' negative reaction to the earnings report that fell short of analysts' expectations.

NexPoint Real Estate, trading on the NYSE under the ticker NREF, reported quarterly earnings of $0.43 per share, missing the analyst consensus estimate of $0.46 by 7.13%. This represents a substantial 36.76% decrease compared to earnings of $0.68 per share from the same period last year. Additionally, the company's quarterly sales came in at $12.07 million, falling significantly short of the analyst consensus estimate of $21.93 million by 44.95%. Despite the miss, it's worth noting that sales still showed a 79.07% increase over the $6.74 million reported in the same period last year.

The market's harsh reaction to NexPoint's earnings miss highlights investors' concerns about the company's performance and future prospects. The substantial shortfall in sales, missing estimates by nearly 45%, seems to be a primary driver of the stock's decline. Investors may be reassessing the company's growth trajectory and ability to meet future expectations, leading to the sell-off observed in the stock price.