Shares of Potlatch Corporation (PCH) plummeted over 5% on Monday, despite the company reporting better-than-expected earnings for the third quarter of 2024. The timber real estate investment trust (REIT) posted adjusted earnings per share (EPS) of $0.04, beating the average analyst estimate of a $0.06 loss.

However, the company's revenue of $255.13 million fell short of Wall Street's expectations of $241.06 million. Moreover, Potlatch's earnings took a significant hit compared to the same quarter last year when it reported EPS of $0.29. The company also saw its net income plunge to $3.31 million in the latest quarter.

Analysts attribute the stock's decline to growing concerns over Potlatch's future performance. While the company managed to beat earnings estimates, the mean earnings estimate of analysts has fallen by a staggering 496% in the last three months, with two analysts issuing negative revisions in the last 30 days. This suggests that analysts are becoming increasingly pessimistic about the company's prospects, which may have spooked investors.