Shares of Atmus Filtration Technologies Inc. (ATMU) plunged 6.67% in pre-market trading on Friday, following the company's fourth-quarter and full-year 2024 earnings release. Despite reporting better-than-expected earnings and revenue, the company's outlook for 2025 raised concerns among investors about its future growth prospects.

Atmus Filtration, a global leader in filtration and media solutions, reported net income of $40.1 million, or $0.48 per diluted share, for the fourth quarter of 2024, beating analysts' estimates. Revenue for the quarter came in at $406.7 million, also surpassing expectations. For the full year 2024, the company reported net income of $185.6 million, or $2.22 per diluted share, on revenue of $1.67 billion.

However, the company's guidance for 2025 fell short of market expectations. Atmus Filtration projected adjusted earnings per share in the range of $2.35 to $2.60 and revenue between $1.67 billion and $1.74 billion. Analysts had anticipated higher earnings and revenue for the upcoming year, reflecting concerns over the company's ability to sustain its growth momentum.

In the earnings release, Atmus Filtration cited unfavorable currency impacts, higher logistics and material costs, and one-time restructuring expenses as factors impacting its 2025 outlook. The company also acknowledged the challenges posed by the slowing economic growth in certain markets.

While Atmus Filtration's fourth-quarter and full-year 2024 results demonstrated the company's resilience and operational efficiency, investors appear concerned about its ability to navigate the uncertain economic environment and maintain its growth trajectory. The stock's sharp decline in pre-market trading reflects these concerns and the potential headwinds the company may face in the coming year.