Shares of Aptiv PLC (APTV) tumbled 5.44% in pre-market trading on Thursday, despite the company reporting better-than-expected third-quarter earnings. The sharp decline appears to be driven by disappointing fourth-quarter guidance that fell short of analyst expectations.

The auto parts supplier reported adjusted earnings per share of $2.17 for the third quarter, surpassing the FactSet analyst consensus of $1.81. Net sales for the quarter reached $5.21 billion, also beating the expected $5.10 billion. These results demonstrated year-over-year improvements, with earnings up from $1.83 per share and sales increasing from $4.85 billion in the same period last year.

However, Aptiv's fourth-quarter outlook seems to have spooked investors. The company forecasts Q4 adjusted earnings per share between $1.60 and $1.90, falling below the FactSet analyst expectation of $1.97. The projected Q4 net sales range of $4.91 billion to $5.21 billion also suggests potential weakness compared to the analyst consensus of $5.13 billion.

Despite the disappointing Q4 guidance, Aptiv raised its full-year 2025 outlook. The company now expects adjusted earnings per share between $7.55 and $7.85, up from the previous range of $7.30 to $7.60. The revised full-year net sales forecast stands at $20.15 billion to $20.45 billion, compared to the earlier projection of $20 billion to $20.30 billion.

The market's negative reaction, as reflected in the pre-market plunge, suggests that investors are more concerned about the near-term outlook than the full-year projections. This sentiment underscores the challenges Aptiv may face in the coming quarter, potentially due to ongoing supply chain issues or economic uncertainties in the automotive sector.