Ducommun Inc. (DCO) stock plummeted 6.86% to $43.21 in pre-market trading on Thursday after the aerospace and defense company reported lower-than-expected earnings for the fourth quarter of 2024 and provided a disappointing outlook for 2025.

The company reported Q4 2024 adjusted earnings per share of $0.75, missing analysts' consensus estimate of $0.81 by 7.4%. Although revenue of $197.3 million grew 2.6% year-over-year and beat expectations of $195.6 million, profit margins were squeezed by higher costs, restructuring charges, and acquisition-related expenses.

For the full year 2025, Ducommun forecasts revenue in the range of $800 million to $820 million, below Wall Street's expectations of around $830 million. The company cited continued headwinds in the commercial aerospace market, particularly from Boeing, as a key factor impacting its outlook.

According to the earnings release, CEO Stephen Oswald said, "Looking ahead to 2025, I am optimistic as well that Boeing's progress on safety and quality control will allow them to regain stability and production growth in the second half of 2025 and into 2026, which would be great news for DCO and an inflection point for higher revenue. This along with the expected growth at Airbus, provides a strong outlook for our commercial aerospace business."

However, analysts expressed concerns about Ducommun's exposure to weakness in the commercial aerospace sector and the potential impact on its financial performance in the near term. The sharp sell-off in pre-market trading reflects investors' disappointment with the company's Q4 results and cautious outlook.