CompoSecure (CMPO) stock plunged over 5% in pre-market trading on Wednesday, despite the company reporting better-than-expected revenue for the third quarter of 2024. The significant decline came in response to the company's staggering pretax loss of $84.845 million, which missed analysts' estimates of a $29.2 million profit.

While CompoSecure's Q3 sales of $107.135 million exceeded the consensus estimate of $105.5 million, and its adjusted EBITDA of $40 million surpassed the expected $38.5 million, the market's focus was firmly on the company's substantial pretax loss. This massive divergence from anticipated profitability overshadowed the positive aspects of the earnings report, leading to a sharp sell-off in the stock.

Analysts had expected CompoSecure to report an adjusted earnings per share (EPS) of $0.29 for the quarter, but the company fell short with an adjusted EPS of $0.27. The company also reported a net loss of $85.474 million for the quarter, further compounding investor concerns.