Carpenter Technology shares tumbled 6.31% in pre-market trading on Thursday after the specialty alloy maker reported fiscal fourth-quarter results that showed a revenue shortfall, overshadowing better-than-expected earnings.

The company posted adjusted earnings of $3.23 per share, topping the analyst consensus estimate of $3.08. However, quarterly sales came in at $851 million, missing the $863.37 million that Wall Street had anticipated. The top-line miss appeared to rattle investors, especially given the stock's rich valuation at 41 times forward earnings. Additionally, Wall Street's median 12-month price target of $466 stood about 12% below the prior day's closing price of $530.62, which may have added to selling pressure.

Looking ahead, Carpenter Technology issued operating income guidance of $850 million to $880 million for fiscal 2027 and set a medium-term target of $1.2 billion to $1.3 billion by fiscal 2029. Despite the upbeat earnings and positive long-term outlook, the near-term sales disappointment and stretched valuation drove the pre-market decline.