SHARKNINJA INC (SN) shares plummeted 5.60% during pre-market trading on Wednesday, following the release of its fourth-quarter financial results.
The company reported strong Q4 performance, with adjusted earnings per share of $1.93 beating the analyst consensus estimate of $1.80, and net sales of $2.10 billion slightly surpassing expectations of $2.09 billion. SharkNinja also announced a new $750 million share repurchase program.
However, investor sentiment turned negative as the company's 2026 outlook provided adjusted EPS guidance in the range of $5.90 to $6.00, with the midpoint slightly below the FactSet consensus estimate of $5.98. This guidance, coupled with the stock's recent valuation expansion—trading at 20 times next 12-month earnings compared to 15 times three months ago—appears to have triggered the sell-off as expectations were not sufficiently exceeded.