What happened

After jumping yesterday on the weekend's news regarding the Inflation Reduction Act, shares of Westport Fuel Systems (WPRT -1.20%) are giving back most of those gains today. As of 3:01 p.m. ET, Westport's stock is down 22.3%.

The stock's move today reflects investors' reactions to the second-quarter 2022 earnings report that the company, a manufacturer of clean energy automotive parts, released after the market closed on Monday.

So what

Failing to meet analysts' top-line estimates of $86.6 million, Westport reported revenue of $80 million. While it came up short of expectations, the company achieved a 1% increase in sales compared to the same period last year.

Similarly, Westport was unable to meet analysts' estimates that it would achieve breakeven on the bottom line; instead, Westport reported a $0.07 loss per share -- a sharp reversal from the $0.11 earnings per share it reported in the first quarter of 2022.

After digging deeper into the earnings report, beyond the headline figures, investors likely found more cause for concern. For one, management drew attention to the effect of the Ukraine-Russia conflict on the company's business. Because of the sanctions imposed on Russia, Westport generated lower sales to Russia in terms of original equipment manufacturers as well as aftermarket customers.

In total, Westport stated that this resulted in lower sales of about $6.1 million for the first half of 2022. With no end in sight to the conflict, investors are likely fearful that the ongoing conflict will continue to adversely affect Westport's business.

Now what

In all likelihood, it wasn't only Westport's weak Q2 2022 earnings report that scared investors today; it's also probable that some people were simply happy to take profits after the stock's sharp rise yesterday.

For prospective investors, the stock's sell-off shouldn't be seen as a buying opportunity. Instead, now's a good time to sit tight and see if the company can gain momentum growing sales at a more rapid pace -- something that is far from a guarantee.