Stock Story -
What Happened:Shares of welding and cutting equipment manufacturer ESAB (NYSE:ESAB) fell 6.7% in the morning session after the company reported second quarter earnings results. Its organic revenue missed, and guidance was below expectations. In light of an operating environment that management considers "challenging," full-year core revenue guidance was lowered to a range of (2.5)% to (0.5)% (vs. previous guidance of 1.5% to 3.5%). Similarly, core adjusted EBITDA guidance was lowered to $495 to $515 million (vs. the previous estimate of $500 to $520 million ). Overall, this was a mixed but overall mediocre quarter for ESAB.
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 ESAB? Find out by reading the original article on StockStory, it's free.
What is the market telling us:ESAB's shares are somewhat volatile and over the last year have had 4 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
ESAB is up 11.1% since the beginning of the year, but at $94.55 per share it is still trading 17% below its 52-week high of $113.86 from April 2024.
![Why ESAB (ESAB) Stock Is Nosediving](https://d68-invdn-com.investing.com/content/picc9274b9e2fe023fa864eb312755bacde.jpeg)