ESAB Corp shares reached a new 12-month low following a series of negative catalysts. The company missed second-quarter earnings expectations and lowered its full-year adjusted EPS guidance.
Investors expressed concern over the heavy debt load incurred for the Eddyfi Technologies acquisition. A recent court ruling also introduced fresh uncertainty regarding historical asbestos liabilities.
Quarterly revenue grew 12.9% year-over-year to $807.6 million, exceeding analyst estimates. Despite the sell-off, analysts maintain a Moderate Buy consensus with an average price target significantly above the current trading price.