What Happened?
Shares of safety equipment manufacturer MSA Safety (NYSE: MSA) fell 5.1% in the morning session after the company reported third-quarter results that showed declining profit margins and persistent challenges in its fire service business, overshadowing a beat on revenue and earnings. Although the safety equipment maker’s sales grew 8.3% year on year, its GAAP gross margins fell by 140 basis points from the previous year. This drop was attributed to inflation, tariffs, and unfavorable foreign exchange rates. The company also highlighted “stronger-than-expected near-term headwinds in the fire service” segment. These difficulties were linked to delayed U.S. government funding and changes in fire standards. Looking ahead, management expressed caution that revenues from the fire service division could remain under pressure, which concerned investors about future performance.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy MSA Safety? Access our full analysis report here.
What Is The Market Telling Us
MSA Safety’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 3.4% on the news that the company posted strong second-quarter results that surpassed Wall Street's revenue and profit expectations. The safety equipment manufacturer reported net sales of $474.1 million, a 3% increase year-over-year. Adjusted earnings per share landed at $1.93, which also beat analyst forecasts. The company's sales growth stemmed from its Detection segment, bolstered by the recent acquisition of M&C TechGroup. This purchase strengthened MSA's position in the gas and flame detection market. In a move that pleased investors, the company also repurchased $30 million of its stock and raised its dividend for the 55th consecutive year.
MSA Safety is down 5.8% since the beginning of the year, and at $155.38 per share, it is trading 13.7% below its 52-week high of $180.03 from July 2025. Investors who bought $1,000 worth of MSA Safety’s shares 5 years ago would now be looking at an investment worth $1,178.
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