What Happened?
Shares of industrial components supplier NN (NASDAQ: NNBR) fell 14.3% in the morning session after the company reported disappointing third-quarter 2025 results, missing Wall Street's revenue and earnings estimates and lowering its full-year sales forecast.
The company's revenue fell 8.5% year-over-year to $103.9 million, well below the consensus estimate of $111.8 million. Its adjusted loss per share came in at $0.01, missing expectations by $0.03. To complete the downbeat report, NN cut its full-year revenue guidance to a midpoint of $430 million, a 3.4% decrease from its prior forecast. Although the company's free cash flow turned positive and its full-year EBITDA guidance was strong, investors focused on the revenue miss and weaker sales outlook, sending the stock lower.
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 NN? Access our full analysis report here.
What Is The Market Telling Us
NN’s shares are extremely volatile and have had 57 moves greater than 5% over the last year. But moves this big are rare even for NN and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 3.8% on the news that optimism surged over a potential trade truce between the U.S. and China. Reports of progress in trade negotiations ahead of a scheduled meeting between the two nations' presidents fueled investor confidence. An agreement would likely ease trade tensions and reduce or remove tariffs that have created economic uncertainty and higher costs for many multinational corporations. Also, optimism improved on expectations that the Federal Reserve will cut interest rates later in the week, especially after recent data showed inflation wasn't heating up as much as expected. Simply put, good news on trade, and the promise of lower borrowing costs created a powerful rally.
NN is down 49.1% since the beginning of the year, and at $1.61 per share, it is trading 62.1% below its 52-week high of $4.25 from December 2024. Investors who bought $1,000 worth of NN’s shares 5 years ago would now be looking at an investment worth $300.37.
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