What Happened?
Shares of industrial equipment and engineered products manufacturer Albany (NYSE: AIN) fell 9.1% in the afternoon session after the company reported disappointing third-quarter financial results, announced a significant loss reserve, and withdrew its full-year 2025 guidance.
Revenue for the quarter came in at $261.4 million, a 12.4% decline from the previous year and well below estimates of $297.9 million. The company reported a GAAP net loss of approximately $97.8 million, a sharp reversal from the $18 million profit recorded in the same period a year ago. A major factor in the poor results was the Albany Engineered Composites segment, which faced challenges with its CH-53K program. The company announced a $147 million loss reserve for the program, citing increased labor and material costs and stating there was no clear path to profitability. Due to the ongoing strategic review of this business, Albany International also withdrew its financial forecast for the full year, adding to investor uncertainty.
The shares closed the day at $48.14, down 10.8% from previous close.
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 Albany? Access our full analysis report here.
What Is The Market Telling Us
Albany’s shares are not very volatile and have only had 7 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 previous big move we wrote about was 25 days ago when the stock gained 3.1% on the news that a softened tone from President Donald Trump on U.S.-China relations boosted investor sentiment. The positive shift followed a weekend post on Truth Social where Trump stated, "Don't worry about China, it will all be fine!" and expressed a desire to help rather than hurt the country's economy. This statement provided significant relief to markets that had ended the prior week with steep losses. In response, the Nasdaq Composite jumped 2.2%, the S&P 500 gained 1.6%, and the Dow Jones Industrial Average closed 1.3% higher, as investors' fears of escalating trade tensions subsided.
Albany is down 39.1% since the beginning of the year, and at $48.24 per share, it is trading 44.1% below its 52-week high of $86.24 from November 2024. Investors who bought $1,000 worth of Albany’s shares 5 years ago would now be looking at an investment worth $811.17.
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