Clearfield Inc. (NASDAQ:CLFD) shares plummeted 5.06% in Friday's pre-market trading following the release of the company's fiscal first-quarter 2025 earnings results. While the company reported a 4% year-over-year increase in net sales, driven by the Clearfield segment's growth, the mixed performance and ongoing challenges weighed on investor sentiment.

For the first quarter, Clearfield posted a net loss per share of $0.13, which was smaller than the guidance range but highlighted the financial difficulties the company is facing. The Nestor segment experienced a 6% year-over-year decline in net sales, reflecting challenges in that part of the business.

Looking ahead, the company faces potential cost increases due to the introduction of tariffs on Mexican goods, which could impact its manufacturing costs. Additionally, there are uncertainties related to the Broadband Equity, Access, and Deployment (BEAD) program due to changes in the U.S. administration, which could affect future revenue projections.

Despite these challenges, Clearfield provided an optimistic outlook for fiscal 2025, with net sales expected to range between $170 million and $185 million. The company anticipates revenue contributions from the BEAD program starting in fiscal 2026 and sees positive trends in quoting activity and the initiation of multi-year projects by customers.