UniFirst (UNF) shares plummeted 8.09% in Wednesday's trading session following the release of its fiscal third-quarter earnings report. Despite beating earnings expectations, the company's revenue fell short of analyst estimates, triggering a significant sell-off.

The uniform rental company reported Q3 revenue of $610.8 million, up 1.2% year-over-year but missing the FactSet consensus estimate of $614.8 million. This revenue miss appears to be the primary driver behind the stock's sharp decline. UniFirst's core laundry operations saw sluggish organic growth of just 1.1%, contributing to the underwhelming top-line performance.

On a more positive note, UniFirst's earnings per share (EPS) came in at $2.13, surpassing the FactSet consensus of $2.01. The company also raised its fiscal 2025 EPS guidance to a range of $7.60 to $8.00, up from the previous $7.30 to $7.70. However, UniFirst maintained its fiscal 2025 revenue guidance of $2.42 billion to $2.43 billion, which may have disappointed investors hoping for an upward revision. The market's reaction suggests that investors are prioritizing revenue growth concerns over the improved earnings outlook, leading to the significant stock price drop.