Camtek (NASDAQ: CAMT), a leading manufacturer of metrology and inspection equipment, saw its shares plummet 7.51% on Tuesday, despite reporting second-quarter earnings that met analyst expectations. The significant drop suggests that investors were looking for more than just in-line results from the company.

For the quarter ended June 30, Camtek reported adjusted earnings of $0.79 per share, matching the consensus estimate and marking a 19.7% increase from $0.66 per share in the same quarter last year. Revenue came in at $123.3 million, slightly beating the analyst consensus estimate of $121.62 million and representing a robust 20.19% year-over-year increase.

Despite these seemingly positive results, investors appeared to be focusing on other aspects of the report. The company's forward guidance for Q3, projecting revenue of about $125 million, only marginally exceeded analyst expectations of $124 million. This modest outlook, combined with the fact that the company merely met earnings expectations rather than significantly surpassing them, may have contributed to the sell-off. The sharp decline indicates that the market had priced in higher expectations for Camtek's performance and future prospects, leading to a correction in the stock price despite the company's growth.