Cameco's stock plummeted 5.38% during intraday trading on Friday, a sharp reversal from its earlier pre-market gains following the company's fourth-quarter earnings release.
The uranium producer reported Q4 adjusted earnings of CA$0.50 per diluted share, significantly beating the FactSet consensus estimate of CA$0.33. Revenue also exceeded expectations at CA$1.20 billion compared to estimates of CA$1.11 billion.
Despite the strong earnings beat, investors appeared to engage in profit-taking during the regular session, selling the stock after its initial positive reaction to the earnings news. This "sell the news" behavior suggests that while the quarterly results were strong, some market participants may have been looking for even more robust guidance or were concerned about valuation levels after recent gains.