Shares of Array Technologies (NASDAQ:ARRY) tumbled this morning after the company reported worse-than-expected first-quarter results late yesterday.
The tech stock had dropped 34% as of 10:44 a.m. EDT.
Array's adjusted diluted earnings of $0.19 per share just missed analysts' consensus estimate of $0.20 per share for the quarter. Meanwhile, the company's revenue of $245.9 million beat Wall Street's consensus estimate of $240.8 million.
"Revenues for the first quarter of 2021 were in line with our expectations and adjusted EBITDA was slightly below our expectations as a result of higher than expected logistics costs," Array Technologies CEO Jim Fusaro said in a press release.
Fusaro also mentioned in the company's earnings report that increasing steel and freight costs will continue to hurt the company's margins into the second quarter and "potentially in subsequent quarters if prices do not normalize," although he said he expects the price increases to be temporary.
But investors were very concerned about the company's latest results and with today's share price drop Array's stock is down 55% over the past 12 months.
Aside from missing analysts' earnings estimate, investors were concerned that Array Technologies won't be able to meet its previous 2021 guidance.
The company's CFO, Nipul Patel, said, "Given the continuing increases we are seeing in steel and freight costs as well as our ongoing review of open contracts to assess what costs we will pass on to customers, we are not able to affirm our previously provided guidance for the full year."
The company will update guidance at a later time, but based on the company's massive share price decline today some investors aren't waiting around to hear it.